Development Victoria has started demolition works at 31 The Avenue in Coburg, marking the start of a major redevelopment that will deliver new Build to Rent homes in a sought-after inner-Melbourne location.
Development Victoria is leading its delivery on the former Kangan TAFE site, with early works now underway. These works, being carried out by Delta Pty Ltd, include demolition, drainage diversion and site remediation to prepare the land for construction.
Soil testing has identified asbestos on site, which is being safely managed and removed under strict controls in accordance with Victorian Occupational Health and Safety Regulations. Certified professionals are overseeing all hazardous material removal, supported by environmental management plans, dust suppression and traffic management measures to minimise disruption to the local community. Early works are expected to continue into early 2026.
Designed by Hayball Architects, the plans propose up to 275 apartments, including Build to Sell, across a four-building complex. One of these buildings will be delivered as Build to Rent and includes 10% affordable housing.
The wider design incorporates both indoor and outdoor communal spaces, a new public park on The Avenue in partnership with Merri-bek Council, and 80 sqm of retail at the corner of The Avenue and De Carle Street. Up to 300 bike spaces and approximately 25 visitor bike spaces will also be provided.
In addition, bricks from the former Moreland Central School building on the site will be reused in the design, maintaining a link to the site’s history while promoting sustainable construction.
“The Avenue, Coburg, is an incredible opportunity to create a vibrant community in a well-established suburb, right where people want to live. The mix of housing on the site will cater for a diverse range of people on a range of incomes and living arrangements, accommodating the diverse housing needs of the Coburg community.
“As part of our plan to create a neighbourhood, we are working with Merri-bek Council to deliver a new public park on part of The Avenue, which will link to existing vacant land next to Kids on The Avenue Childcare Centre.
“Involving our community in the creation of the new public park is a great demonstration of how we are delivering spaces for everyone to enjoy.”
Nemesia Kennett, Acting Executive General Manager, Housing, Development Victoria
Development Victoria has confirmed that the main construction contract is currently out to tender under a Request for Proposal process, with a successful builder expected to be appointed in late 2025. Construction of the apartments will follow, subject to further approvals.
The Avenue site has a long planning history. It was previously occupied by the Kangan TAFE campus, which played an important role in the local education network before being vacated. The land has since been earmarked for redevelopment as part of Merri-bek Council’s broader plans to regenerate central Coburg, with a focus on delivering new housing in established suburbs close to services.
Located within walking distance of Coburg railway station, local shops, childcare and schools, the proposed scheme aligns with state and local government priorities to increase housing supply, diversify tenure through Build to Rent delivery, and integrate affordable homes into new developments.
The development is being delivered in line with the Victorian Government’s Housing Statement, which sets out commitments to increasing the supply of housing across the state. It will also create a new public park linking with existing land adjacent to Kids on The Avenue Childcare Centre.
Community consultation on the design of the park took place between 28 July and 25 August 2025, and the team has emphasised the role of local input in shaping the scheme. Registrations of interest for prospective homebuyers are already open, with a sales office on Sydney Road, Coburg, now in progress and sales expected to launch in late 2025.
