Historic defence properties in Sydney, Melbourne and Brisbane set for sale and public access
Some of the country’s most historic defense properties, including Victoria Barracks in Sydney, Melbourne and Brisbane, are set to be sold and opened to the public; staff are regularly shifted to expensive and recently renovated nearby offices that are half-empty.
After more than two years of anticipation, the federal government is soon preparing to unveil its response to a sweeping audit of a 3 million-hectare defense land portfolio that could add billions of dollars to the budget, expand public access to the nation’s military history and create more housing in inner-city areas.
Sources familiar with the audit, which was submitted to the government in December 2023, said it identified a number of examples where the use of historic sites as defense installations was becoming increasingly impractical and expensive to maintain.
A subsequent analysis carried out for the government found that many defense areas were underutilized and closed to public access; This means there is “significant room for consolidation” in defense.
Sources said the government had decided that “these sites are of little benefit to the defense force or the public as they are currently used”.
Disposal of Victoria Barracks facilities in Sydney, Melbourne and Brisbane could save taxpayers hundreds of millions of dollars over the next decade; This could highlight the scope for huge savings if dozens of other defense sites are also sold, as expected.
Although heritage listings limit the scope for redevelopment, the resale value of the three sites is estimated at $1.3 billion.
Any sale of the defense force’s valuable property will inevitably arouse resistance from residents and veterans who want the status quo maintained, explaining why the government has taken so long to respond to the audit.
Government analysis found Sydney Victoria Barracks in Paddington was a third empty on an average day, while the newly refurbished Defense Plaza office complex in the CBD was 60 per cent empty. Approximately 700 personnel work in both facilities.
Maintaining Victoria Barracks Sydney, built between 1841 and 1849, in its current form is expected to cost taxpayers approximately $195 million in infrastructure and maintenance costs over the next 10 years.
The 15-hectare site is home to the NSW Army Museum, but public access to military history is restricted as it is only open for four hours one day a week and on the third Sunday of each month.
To address the shortage of inner-city housing, the City of Sydney has embraced the idea of transforming the area into public green space, cultural facilities and apartments.
“The perimeter walls, once built for defensive purposes, act as a barrier between this important heritage site and the surrounding neighbourhood,” the council said in a plan published last year.
“The area is largely unknown due to limited public access.”
Councilor Zann Maxwell said: “If Defense decides that Victoria Barracks is no longer essential to Australia’s contemporary strategic posture, we must be prepared to transform it into something extraordinary that meets the needs of today while preserving the legacy of the past.”
The government has previously expressed interest in selling vacant Spectacle Island in Sydney Harbour, which has cost more than $4 million to maintain since 2023.
The heritage-listed island, near Drummoyne in Sydney’s inner west, survived World War I and II. It was used to store ammunition during World War II.
Experts have also identified HMAS Penguin at Balmoral, home to the defense force’s diving school and naval medical school, as a prime candidate for sale.
Victoria Barracks Melbourne on Southbank has a occupancy rate of 56 per cent, meaning it is almost half empty on most days.
Meanwhile, Defense Plaza Melbourne in the CBD has an utilization rate of just 46 per cent.
This means the modern office facility is more than half empty most days, despite $130 million spent on renting, equipping and maintenance over the past five years.
Completed in 1872, Melbourne’s Victoria Barracks once served as the main headquarters of the Defense and served as the main headquarters for World War II. It hosted the special war cabinet during World War II.
The war cabinet room is not currently open to the public, despite its important historical role.
Deputy Minister of Defense Peter Khalil, who is responsible for the defense area, said: “Strong protections are in place for many buildings with heritage cladding, but many of these are currently not open to the public to view or use.
“We want to ensure that as many Australians as possible can access and appreciate our military history.”
While Brisbane’s Victoria Barracks is almost half empty, there is sufficient capacity at Gallipoli Barracks, a 12-minute drive away.
Maintaining Victoria Barracks in Petrie Terrace in its current form is expected to cost $105 million over the next decade.
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