Property demand in Melbourne’s southeast is showing no signs of slowing with the number of new estate launches jumping from seven to 16 in the past two years.
The 129 per cent growth is expected to be further fuelled by developers spending up big to move into the region's newest suburb.
Lendlease is the latest developer to move forward with plans after picking up two rural properties for around $120 million in Pakenham East.
The transaction is a joint-venture between local farmers and the developer with final price to be ultimately determined by revenue from the project.
The 113 hectares of land is across three titles and is currently used for cattle farming.
Lendlease is expected to lodge a development application for the site which is estimated to deliver 1,100 lots.
The Pakenham East suburb was approved in January with greenfield developers Satterley and Parklea also set to develop estates within the area, which is located 65 kilometres from the Melbourne CBD.
Once complete, the suburb will include 7,200 homes, a town centre, four schools, three community centres and 44 hectares of parks and sporting reserves.
Core Projects acquisitions manager Kane Malcomson brokered the deal with colleague Trent Malcomson.
“The farmers were on the land for the better part of 40 or 50 years, so to partner with a group like Lendlease is fantastic,” Malcomson said.
Demand for new homes across Melbourne’s southeast has grown swiftly, boosted by government stimulus programs such as the federal government's HomeBuilder grant.
Lot sales within Lendlease’s Pakenham East estate are set to commence in 2021.