Demolition deal signed despite ongoing class action

John Holland has been awarded the contract to demolish three Victorian public housing towers. (Daniel Pockett/AAP PHOTOS)

The Victorian government has signed a contract to tear down three public housing towers despite an ongoing class action suit.

Homes Victoria has awarded John Holland the contract as part of its high-rise redevelopment program in Carlton, Flemington and North Melbourne.

Victoria's Supreme Court issued orders in July for a public housing class action to proceed to trial in October over the demolition of three towers - on Alfred Street and Racecourse Road in North Melbourne and Holland Street in Flemington.

The court will consider whether Homes Victoria decided to demolish them properly and with appropriate consideration for the human rights of the inhabitants.

A spokesperson for the social housing body told AAP it would be inappropriate to comment as the matter was before the courts.

The Greens slammed the contract on Sunday, saying more public homes were needed rather than pulling down existing ones.

"Knocking down public homes in the middle of a housing and rental crisis is like drilling holes in the floor of the Titanic," party leader Adam Bandt said.

"At a time when both state and federal Labor governments should be building more public housing, they seem to be walking away for good."

Homes Victoria has stated before the court that no notices to vacate would be issued concerning these towers before January 1, 2025.

All 44 of Melbourne's public housing high rise will be redeveloped by 2051, with five in Flemington, North Melbourne and Carlton expected to be replaced by 2031.

The project - a key pillar of the government's housing statement unveiled by then-premier Daniel Andrews in September - will lead to the relocation of more than 10,000 residents.

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