MELBOURNE'S public housing of high-rise estates built on prime land in popular inner-city suburbs is set for its biggest shake-up in decades, Fairfax Media says.
There is a proposal to the state government to knock down the towers and build an equal mix of public and private housing developments.
Fairfax says in order to underwrite such a radical overhaul, the state government could allow shops and offices to be built on the border of estates in North Richmond and Fitzroy.
The paper says the new estates are being developed in partnership with private enterprise, and the state government had received $175.3 million to build 547 homes on the Fitzroy, Prahran and North Richmond estates through the federal government's Housing Affordability Fund.
The departmental brief is due to be endorsed by Housing Minister Wendy Lovell by January 21.
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