Reprieve for ‘hold out’ tenants as court blocks public tower evictions

More than 30 “hold-out” households across three public housing towers can remain in their homes for now, the Court of Appeal has ruled, further stalling the Victorian government’s multibillion-dollar plan to demolish the Melbourne high rises.

In a reprieve for activists, the injunction protects current residents at 33 Alfred Street, North Melbourne, and 120 Racecourse Road and 12 Holland Court in Flemington from being formally evicted until their failed class action is heard by the High Court in coming months.

These towers were originally intended to be entirely vacated by September 2025 and were the first tenanted buildings marked for demolition under the state’s 30-year plan to replace 44 towers across the city.

But roughly 30 households remain living across the three almost empty towers, refusing to relocate despite government relocation offers.

In December, the Court of Appeal upheld an original ruling that the state government’s redevelopment plan had not impinged on tenants’ human rights, dismissing a two-year class action brought to halt the demolition rebuild plan.

But on Thursday, the same court granted the injunction, which allows lawyers to appeal to the higher court without the remaining tenants being evicted. Justice Richard Niall said the injunction was necessary to “preserve the subject matter of the litigation”, and said refusing it would cause significant uncertainty and disrupt the status quo for vulnerable tenants.

Outside court, managing lawyer at Inner Melbourne Community Legal Louisa Bassini said the injunction was a win for tenants, and that it would be a number of months before the High Court would even decide if it will hear the case, let alone the time a full appeal could take.

“I think certainly our clients will be happy knowing that they don’t have force to leave right now and they can wait and see what the [High Court] outcome is,” she said.

Lawyers for the state government argued in court that further delays would be costly in contractor holding costs and construction escalation. Construction giant John Holland was awarded a $100 million contract in 2024 for the demolition of the three towers subject to the legal case.

Normally, someone blocking a project like this would be liable to pay for the government’s financial losses if the case is eventually lost. However, the court on Thursday made an exception because lead plaintiff Jason Mallard is a disability pensioner, allowing him to continue the legal battle without the risk of ruinous costs.

Last week the Allan government dramatically escalated the redevelopment program by naming the next seven towers set for demolition. These buildings – located in Albert Park, Flemington, Kensington, North Melbourne, St Kilda, and Prahran – are all dedicated “older persons” communities who are due to begin relocating in July.