South Melbourne brothel Pink Palace closes after 30 years to be replaced with an 18-storey apartment building

Pink Palace closed its South Melbourne brothel this month after more than 30 years in operation there.

The double-storey building (pictured, top) was offered for sale in March 2017 with either vacant possession or an option allowing the sex venue to renew its lease.

Instead, 8-16 Palmerston Crescent traded to developers after that campaign for a speculated price of about $15 million.

It is now earmarked to be replaced with an 18-storey mixed-use but predominantly residential complex with a rooftop pool and bar. The Elenberg Fraser designed proposal, penned for the new owners, developer Crema Group and Geomax Capital, will include offices and retail space as well as about 35 flats.

Construction over the 908 square metre block is expected to begin next year following a campaign in November to sell the dwellings off-the-plan, according to this article by

Several Melbourne adult venues have been offered for sale over the past few years.

Elsewhere in South Melbourne, the Gladstone Street site occupied by Pleasuredome – considered Melbourne’s first transsexual brothel – sold about six months before Pink Palace, to Sydney investors.

The Eporo Tower recently replaced former gay sex venue Steamworks, which closed in 2008

In November, 2016, apartment builder Auyin Developments paid $12.7 million for the former Daily Planet brothel in Elsternwick. Another suburban brothel, the Whispers Playhouse in Hoppers Crossing, also sold that month as an investment.

About two years ago, adult industry entrepreneur Joseph Sabota listed for sale the Dendy Adult Cinema and Club X in the city’s Coverlid Place, properties he co-owned. Strip club Showgirls at 46 King Street also traded in 2016 to Lorenz Grollo, who co-owns the landmark, neighbouring Rialto office complex.

In 2010, former gay sauna Steamworks was acquired by the Coptic Orthodox Church which has since replaced the site with Eporo Tower – a 43-level apartment building containing a house of worship at its lower levels.

Steamworks had operated at 279 La Trobe Street for more than 30 years before closing in 2008.

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Marc Pallisco

A freelance property writer and experienced analyst, Marc is the co-founder of