Victorian Government’s in-house buyer sparks fresh concern for apartment communities

In late July it was reported that Homes Victoria, the Victorian Government’s housing agency, is hiring an “internal homebuyer.”

The aim of the role? To secure properties – via lease or purchase, including bulk and off-the-plan deals – for residents displaced by the planned demolition of Melbourne’s public housing towers.

This announcement has triggered fresh alarm across Melbourne’s vertical communities, particularly in nearby high-rise strata buildings. While Homes Victoria has previously purchased and leased properties to grow the state’s social housing stock, the job ad’s reference to a “high priority Tower Relocations program” suggests a ramp-up in acquisitions as 44 towers are progressively retired.

Unsurprisingly, this initiative is reigniting serious concerns among apartment owners, residents and strata managers – many of whom remain wary after the government’s previous forays into headleasing.

Critical questions remain unanswered about this government strategy including what criteria will define a “suitable” apartment? Already evident is geographic proximity, to help public housing residents remain near their communities – but what else might be considered desirable?

What about onsite building management? Will this be viewed as desirable in that they could “unofficially” take on front line support functions? It has happened previously in Docklands.

As highlighted in my earlier Docklands News article (“Headleasing in residential strata”, August 28, 2024), we have seen what happens when social housing is introduced into private residential buildings without adequate support.

Remember Queens Place and the Botanic complex in Southbank? Vulnerable individuals were placed in apartments without wraparound services – resulting in antisocial behaviour, resident distress and building managers pushed into roles far beyond their remit.

The concern is that this new in-house buyer role could signal a renewed push to embed social housing in our vertical communities – again, with little clarity or preparation.

Additionally, there is growing unease about transparency. With off-the-plan purchases on the table, residents fear decisions will be made long before they are informed, undermining trust and long-term cohesion.

And most importantly, what responsibilities will the government assume as a head lessee or owner – what role will they play in addressing building defects, participating in owners’ corporation decision making and strengthening community cohesion?

The goal of rehousing displaced residents is both valid and urgent. But unless supported by clear accountability, adequate services, and early consultation with owners’ corporations, this policy risks repeating the failures of the past.

If Victoria wants its housing strategy to succeed, it must learn from the lived experience of those already residing in our apartment communities. •