Potter George Group will push ahead with a major new residential community at Craigieburn after dropping $76 million on a 25.6ha greenfield site.
The new housing estate, to be called Montview Estate, is 26km north of the Melbourne CBD in the expanding growth corridor at 1300-1320 Mickleham Road.
Potter George Group is planning to create a 475-lot residential subdivision and community park at the site, with an end value of more than $200 million.
The new residential estate is 9km south of the developer’s sold out 625-lot development at Mickleham.
Potter George Group sales manager Jan Anthony said the latest land release would help meet “unprecedented demand for quality land” in the growth corridors surrounding Melbourne.
“Featuring a range of lots sized to suit a variety of home designs, Montview Estate will be home to around 475 families,” Anthony said.
“Set around a community park, the estate is located in Craigieburn, Melbourne’s pre-eminent growth area with only a 25-minute commute to the CBD, while Melbourne Airport is just 10 minutes away.
“Demand is incredibly strong in this well-established family area with a host of schools and colleges, shopping and medical centres, employment options, cafes and sports facilities within a short drive.”
Construction on Montview Estate is expected to begin in July 2023.
Recent population forecasts showed Melbourne was due to overtake Sydney as the most poulous city within the next 10 years.
Oliver Hume chief executive of project marketing Julian Coppini said demand had cooled in the back end of 2022 and anticipated this to continue into 2023.
The consumer price index results released this week show a 1.9 per cent increase in the last quarter, and a 7.8 per cent increase in the 12 months to December.
“Unfortunately, forecasts are precisely that, and there is still much uncertainty about how these interest rate increases will impact the real enemy—inflation,” Coppini said.
“We could be waiting until late April when the March quarter data comes out before we get greater clarity on interest rates.
“It is also important to remember there are about $370 billion of fixed-rate mortgages that will end in 2023, with these borrowers transferring to a much higher variable rate. The RBA will no doubt consider this as it weighs future rate increases.”