The Department of Housing units at 19 Braithwaite Road caught fire in November and a tenant was rushed to hospital with serious burns.
Six units were extensively damaged, with a repair bill estimated at more than $1 million.
The property was deemed unliveable and has been vacant since the fire.
About 20 tenants were displaced and reportedly housed in Department of Housing accommodation. Mr Kelly said in Parliament last week he was concerned with what would happen with the site.
‘It is an empty two-storey block of units that has been fenced off and looks very ugly,’ he said.
‘It is an eyesore and is highly vulnerable to becoming a centre for anti-social behaviour in the electorate.’
Mr Kelly said the units should either be demolished so that something else could be done with the site, or refurbished to house people again.
‘I am concerned that the Department of Housing will leave that site derelict for a long period, which would be a complete disaster for the people of Lockridge,’ he said.
‘The people of Lockridge have worked hard to improve living conditions in the suburb and they should not be burdened with an eyesore because of government inactivity.’
The Department of Housing was contacted by the Eastern Reporter for comment but did not provide a response by deadline.