Once in a Lifetime Development Site Hits the Market

A 206-hectare landholding in Melbourne’s Wyndham corridor is one of the most unique development opportunities in Australia, according to sales agent RPM Real Estate Group.

Located 29km west of the CBD in Tarneit, with the future Riverdale train station located within the estate, the site has the potential to yield more than 2,600 homes.

The property has frontage to the Werribee River, 17.5-hectares of open space and parkland and adjoins a future major activity centre.

The site is in the Urban Growth Zone identified for residential development within the Oakbank Precinct Structure Plan (PSP).

“Scale sites within the growth corridors are extremely rare,” RPM Real Estate head of transactions & advisory Christian Ranieri said.

“To have a train station and major activity centre on site makes this one of the most unique and exciting opportunities to create a transport and amenity-orientated development.

“Similar to the nearby Williams Landing, these estates become ‘premium living’ place-making estates and are the most popular with purchasers.”

Developments such as this outperform the competition and provide the opportunity for higher density around the train station and activity centre.

“This is a prime opportunity for a developer to put their stamp on Melbourne’s greenfield market, shape the PSP process and create a future landmark residential community,” he said.

The Wyndham growth corridor is Australia’s fastest growing municipality.

By 2041, Wyndham is forecast to double in population to almost 490,000 residents. A future employment precinct in Werribee is also projected to drive 58,000 jobs to the region.

Ranieri said the vendors had been approached by major developers and agents in the past and knocked back offers over $200 million before deciding to put the property to the market.

“Combined with generous terms on offer and the ability to structure a deal that suits a long term pipeline, the final transaction could set a record for 2018,” he said.

“Victoria’s economic fundamentals remain strong and the site is a unique opportunity to capitalise on the next cycle and deliver the next big masterplan.”

Rates well above $1 million per hectare have been achieved for recent transactions including Aura Cacia’s $80 million acquisition of a 60-hectare site in Tarneit in April, reflecting a per developable hectare rate of $1.96 million.

Akron Lara’s acquired a 15-hectare site in Point Cook for $45 million, reflecting a rate of $3,750,000 per developable hectare for unzoned farmland.

These deals followed Dahua’s string of acquisitions in Point Cook in 2016 for similarly zoned land without a PSP, with rates in excess of $2 million per hectare for unzoned farmland, each on much shorter terms than offered for this acquisition, underscoring a growing appetite for longer term deals and premium offerings which capitalise on future growth.

Historically, Melbourne median retail lot prices have increased on average five per cent per annum, indicating in six years’ time the current median land price for 400sq m lots could be sitting around $440,000 – albeit the median lot size is likely to decrease over this time.

The current median price for a 400sq m lot in Wyndham is $325,000, which has increased 17 per cent over the last 12 months.

RPM’s second quarter Residential Market Review reveals new housing demand remains the strongest in the Western growth corridor, accounting for 46 per cent of total lot sales, with currently less than one month’s lot supply available for sale.

“We’ve received strong interest from a range of parties including major institutions and offshore developers, who are particularly interested in Wyndham which is well serviced by existing amenity and transport links and only 29kms from the CBD,” Ranieri said.

The site will be sold by international expression of interest which will close on Thursday 4 October at 4.00pm (AEST).

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