This Just In: The City of Melbourne Wants to Build a School, Housing and Creative Hubs in the Victoria Barracks Site

The St Kilda Road site could soon be home to schools and community centres under a City of Melbourne proposal.
Alec Jones
Published on May 11, 2026

One of Melbourne's most beloved heritage properties, the 5.7-hectare Victoria Barracks site on St Kilda Road, could soon be home to new arts, culture and education developments to support the Southbank community, as reported by The Age on Saturday. The site, a complex of historic bluestone walls covered in thick red and green ivy, is one of 16 defence sites across Victoria currently for sale — and is hotly contested by buyers and heavily spoken for by locals.

Victoria Barracks was originally built in 1850 to house colonial forces, then served as the headquarters of the defence department for 50 years, and later as the home of Australia's war cabinet during World War II. Since then, it's just functioned as an administrative hub for the defence forces, making it a natural choice among the 67 defence sites nationally listed for sale by the Albanese government earlier this year.

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As the ADF plugs gaps in its network and redirects infrastructure investments to Northern Australia, sites like this are now getting a chance for new beginning under new ownership. In the case of Southbank's Victoria Barracks, which, along with its Sydney and Brisbane sister sites, attracted commercial buyers' attention, the City of Melbourne has announced its master plan to divide the site into a shared commercial and community hub.

At a City of Melbourne council meeting, a proposal was put forward to maintain the site's heritage — and re-utilise the site for a mix of open public spaces, housing developments, a prep to Year 12 school and community arts and cultural spaces. At the meeting, Lord Mayor Nick Reece described the potential redevelopment as a "once in a generation" opportunity for Melbourne, saying, "This is an opportunity for the Commonwealth, Victoria and the city to get the development, the reimagining of these sites right so they continue to serve our city not just for the next decade but for the next century beyond."

Reece cites the mixed development as an opportunity to capitalise on Southbank's growth, and that the site could serve to plug existing gaps in the local area, which currently has no secondary school. Reece is also concerned that the Victorian government is prioritising the sale without a plan, saying "We have to ensure we get the planning right on these sites as well as a clear acknowledgment of what the planning regulations, overlays and controls are that will apply on these sites."

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The Southbank community gathered last week to raise their concerns about the sale to Assistant Defence Minister Peter Khalil, who said the Victorian government was "undertaking engagements with community, council and historical organisations" to decide the future of the site, and that no buyer had been finalised as of yet.

The City of Melbourne currently doesn't have an active role in the decision, but wants one to ensure it can offer enough opportunities to local residents, rather than just generating revenue at the federal level. The Senate is currently undertaking an inquiry into the sale, which has reportedly received over 100 submissions and will continue in the coming weeks.

Lead image: Rexness via Flickr

Published on May 11, 2026 by Alec Jones
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