VIC Post up on new land releases in Melbourne

Has anyone got some feedback on Villawood's Wandana? Its next to Highton and has close proximity to Geelong? Its in stage 4 with prices starting from 250K and up.

 

I drove past yesterday and from what I could see from the freeway some of the stages will be on fairly sloping blocks which would add to the build cost. Quick access to the freeway would be a plus but there'd be some noise for sure from the traffic. A 400sqm block is $300k

 

Reviving this thread a bit. A new estate in Truganina has sprouted up, they reckon they'll be close to some new train station that's proposed to be built along the Ballarat commuter line. This estate's called Grandview and have had their first land release last week (?). Here's a picture of now-standard crazy prices:

 

A 350sqm rectangular block (12.5x28) is $300k. Crazy price.
Here is the price list for Mambourin Stage 1 by Fraser

 

Geez, those mambourin prices aren't any better...

 

Yeah but quite a lot of interest.

 

Titles are expected late 2019 - early 2020. Some people are going to lose their shirts as @sash would say. I got a call from Botanical the other day about some blocks being back on the market:



I asked why and the answer was - well some people are having problems with finances or have otherwise withdrawn their interest and given the blocks back to us to put on the market.

 

I could understand those prices if it was infill land in a built up area, but these land releases are surrounded by open paddocks.
As more people struggle with finance, I'd expect to see some developer deals/discounts

 

Mate that is code for the market is cooling...and people are no longer willing to pay the huge prices....this is when people tend to jump in thinking this is an opportunity and lose their shirts/skirts. Seen it all before......

 

With those price, the final product is way overpriced and get super low yield considering the rental income it can fetch.

 

Crazy prices!! The market is definitely starting to level out and people are thinking twice before paying such high prices. I don't blame them either.

When entry level H&L is hitting 500k, you have to question how much growth is left, especially at this stage of the cycle.

I'm also noticing more advertising by the builders, with some generous site cost and upgrade packages being offered. Another sign that the market is starting to turn and enquiry is dropping.

 

Hi @Westie, do you know hw much is the fees at Woodlea's Bacchus Marsh Grammar school?

 

Nope, no idea. Isn't that school upto grade 6 or so only? Two of mates live in Woodlea and the 'consensus' from some of the residents is they didn't buy in the area for that school, it was that they bought in early for the rapid CG over the past 2 years and the flashy new house.

 

What are your thoughts on Willandra estate in melton west?

 

You'd be MUCH better off buying a property on a large block much closer to the trains and shopping.

 

Apologies for the late reply but I'd echo what @Westie said above. The only estate I was big on was the Atherstone estate in Melton South which I've spoken about in another thread. I haven't been following the Melton market lately but if I had to buy in an estate it would be Atherstone.

Good luck.

 

I rang bridgfield about 2 weeks ago and its all sold out

 

Further to my previous post about a train station in Atherstone, it looks like construction has actually already begun.
Preparation works have commenced for the new Toolern Station at Atherstone, as part of the Ballarat Line Upgrade project. This is an exciting step in the construction program as we look towards a late-2019 opening.

Even more reason why Atherstone is by far the best estate in Melton.

 

Melbourne housing lot defaults at 25 per cent, says Satterley



One in four buyers of housing lots in Melbourne, the country's biggest residential land market, are defaulting on their purchases, says Financial Review Rich Lister Nigel Satterley.

Mr Satterley, who runs the country's biggest private land developer, Satterley Property Group, had warned in December that around 5000 lots in new housing estates would either default or have to be on-sold quickly over the next 30 months due to Uber-driving speculators and foreign investors not being able to get finance.

But, speaking with The Australian Financial Review this week, he said the situation was "much worse than I previously thought".

"At a minimum, the fallover rate is 20-25 per cent in the Melbourne land market," Mr Satterley said including across Satterley's own housing estates. "This is up from 5 per cent in December 2017."

Mr Satterley said in Perth the fallover rate was about 35 per cent and in Sydney about 15 per cent.

story of his Melbourne Uber driver who had bandied together with his friends to raise $20,000 for a deposit on a housing lot with the plan to sell on the contract at a much higher price and pocket the profit.

Amid the steep housing market correction, sales of house-and-land packages in Melbourne's new housing estates have plunged from annual sales of 25,000 18 months ago to just 10,000 a year with prices easing, Mr Satterley said.

Mr Satterley said he expected land prices to fall a further 7.5 to 12.5 per cent while established house prices would fall a further 10-12.5 per cent.

"The best month for sales last year was February when there were 1845 lot sales in Melbourne. In December that figure was just 552," Mr Satterley said.

Mr Satterley said he was aware of a number of major home builders and developers who had laid off staff due to the downturn in sales and rising defaults.

Lot prices, which peaked in the second quarter of 2018, at a record of $355,000 – growth of 40 per cent annually – have also eased back with project marketer Red23 recording a median price of $348,000 in December.

Red23 head of research Andrew Perkins said sales volumes had fallen "significantly" and put the current annual sales rate at less than 15,000 lots compared with "north of 22,000".

Mr Perkins added that incentive had returned to the land market after a number of years.

"These have taken the usual forma – rebates, landscaping and referral. There are prevalent in every growth area municipality," he said.

Among those offering incentives is Satterley Property Group which is giving away a $15,000 "thank you" bonus for purchasers in its Victorian estates up until the end of February. Buyers need only put down a $10,000 deposit to secure their lot.

 

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