New CBD pop-up park expected for Melb’s ‘intersection of sleaze’
The expansive 600 Lonsdale St, Melbourne, property has sat vacant for years — but is understood to be on its way to having a public park space established.
The City of Melbourne is in talks to establish its second pop up park in response to a stalled development on the CBD’s “intersection of sleaze” after a $65m sale failed to eventuate.
The 1923sq m development site at the corner of Lonsdale St and King St has been a patch of dirt since 2022, when developer V-Leader demolished a complex that had been there ahead of a $574m planned development project.
Surging building costs as well as reduced demand for office space in the city has hampered its construction, and the 600 Lonsdale St property remains vacant.
RELATED: Vacant Melbourne patch of dirt at ‘intersection of sleaze’ up for sale for $65m
Dan Andrews’ ‘ghost’ home legacy revealed as apartment towers stall
Holes of Melbourne: Mayor prepares to fight ‘zombie’ sites around the city
The 1923sq m development site at 600 Lonsdale has been a patch of dirt since 2022, when developer V-Leader demolished a complex that had been there ahead of a $574m planned development project — which has since stalled.
It’s across the road from the former Goldfingers night spot, which last year had a community park space established on it after sitting vacant long term.
It comes as the City of Melbourne has issued a warning to the “lazy landlords” as it seeks to “crack down” on the city’s vacant, unsightly and unsafe addresses, after the Future Melbourne Committee passed the motion on Tuesday night.
Lord Mayor Nick Reece said they were “exploring new powers so that if you don’t clean up your act, we’ll do it for you”.
An indication of the tower that is expected to be built at the 600 Lonsdale St site.
Stewart and Ali Bell, with son Max Bell, 8, enjoying the park established on the site of the former Kilkenny Hotel just before it was opened last year. Picture: Nicki Connolly.
“I’m fed up with eyesores which are targets for graffiti, dumping and anti-social behaviour – it’s disrespectful to our community,” Mr Reece said.
“There’s no excuse for letting a vacant site go to ruin. A pop-up park, a food truck hub, community markets or busking stage can prevent vandalism and bring life to the area — and in many cases, pay for itself.
“We want Council to look at every policy lever and intervention that is available to crack down on these sites.”
The council will now explore ways to put more pressure on site owners to get projects built, including considering the introduction of differential rates for more unsightly addresses.
At present the Local Government Act allows the council to issue fines of $1017.15 for site owners who leave a property in an unsafe or unsightly condition.
A render showing how the planned 600 Lonsdale St development will look once built.
Aerial imagery used to market the property shows both the vacant site, and the second empty lot across the road.
They also have a provision to force developers to activate empty blocks for public use, but only for those that had it included as a condition of their planning permit — a practice that came into play in 2019.
Some landlords and site owners, like V-Leader, have encountered difficult scenarios where surging building costs as well as reduced demand for office space in the city has hampered plans for construction.
The developer sought to sell its 600 Lonsdale St site last year with a $65m asking price, but Cushman and Wakefield agents engaged on the sale have confirmed it is no longer actively being marketed.
Council is understood to now be partnering with the owners to provide greenery including grass and plantings as well as park benches.
Deputy Lord Mayor Roshena Campbell said they were stepping in to work with landowners across the city for temporary adaptations to benefit the community when delays occurred.
“No one wants to see building sites sitting idle in the city,” Ms Campbell said.
“Over the past two years, we’ve turned grey sites into green spaces – like the former Kilkenny Inn site on King Street, which is now a popular outdoor lunch spot for city workers.”
A rundown building at the corner of Melbourne’s CBD at 1-23 Rathdowne St, Carlton, is also on the list the City of Melbourne wants made to look more attractive. It’s for sale by wealthy China richlister Wang Hua for $62m.
Lord Mayor Nicholas Reece has previously referred to the corner that hosts the two properties as the one-time home of Melbourne’s “intersection of sleaze”, while his predecessor Sally Capp pledged to fight “zombie” sites languishing without development around the CBD.
Last year, the Herald Sun reported that the Kilkenny Inn site, better known for a long period as the home of gentleman’s club Goldfingers, would become the first empty allotment in the CBD to trigger the development clause since before the pandemic.
When it is eventually developed, it is expected to be turned into a 22-storey office tower by developer Hickory.
That site remains a park and has yet to be developed, though the old Inn is still present as a building shell.
It is located across the road from the 600 Lonsdale St property owned by V-Leader, run by Chinese-Australian Andy Zhang, which bought it for $52m in 2018.
The latest plans for that site call for it to be turned into 24,400sq m of office space, following a 2022 change to a permit that had initially stipulated it would be a hotel.
Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox.
MORE: Govt’s 50,000 home fail in $47k price surge
Melbourne’s smallest shops reveal shocking price per metre rates
Revealed: Melbourne’s surprise hotspot set to drive city’s next property boom
