Unused Melbourne rail spur to become 70-townhouse community

A former rail spur in Melbourne’s inner-east is set to be transformed into a new townhouse community, with Nightingale Housing appointed to deliver the collection of 70 homes in Alphington.

The not-for-profit developer has been selected to redevelop the site as part of the Victorian Government’s Small Sites program, which aims to convert surplus government land into housing in established suburbs.

“Small Sites is one of the many ways Development Victoria is working with the private sector to transform surplus government land into much-needed homes, expanding housing choice and affordability in locations close to jobs and services,” said Alex Kennedy, Executive General Manager, Investment and Portfolio Management of Development Victoria.

The Alphington project will deliver approximately 70 townhouses designed by architecture studio Breathe, forming what the practice describes as a “horizontal community of sustainable terrace homes.”

Homes will range from compact dwellings to three-bedroom terraces and are designed to maximise natural light, with all residences oriented north to improve passive thermal performance.

Around 10% of the homes will be delivered as affordable housing for low-income women and women-led families. Nightingale plans to partner with community housing provider Women’s Property Initiatives to provide the homes as long-term rental accommodation.

“By teaming up with Women’s Property Initiatives to deliver a portion of homes as affordable, long-term, secure rental housing, we can help more women and women-headed households have access to truly high-quality homes,” said Toby Dean, Head of Community at Nightingale Housing.

The project is part of a broader push to improve housing access for groups that often face the greatest barriers to secure accommodation.

Reconnecting the site

Beyond housing, the redevelopment aims to reconnect the former rail corridor with the surrounding neighbourhood.

Plans include a new public green space and a formal pedestrian and cycling route linking Grange Road, Hamilton Street, and Railway Place, improving access to nearby shops, schools, and public transport.

Community consultation helped shape the proposal, with feedback highlighting strong support for new housing, open space, and improved local connections on the site.

The development will also prioritise alternative transport, with shared parking, electric vehicle charging, car-share options, and extensive bicycle parking included in the design.

Part of a wider housing initiative

The Alphington site is one of 14 parcels of government land earmarked for development under the Small Sites program, which aims to deliver up to 1,000 homes across Melbourne, Bendigo, and Geelong.

Construction on the project is expected to begin in 2027, subject to planning approvals.

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