AFTER paying just $855,000 in 2005, the owners of a 3.6 hectare landholding in Melbourne’s south east are in for a massive payday after selling the property to Western Australian developer Satterley for $11.26 million.
The 65 Mary Street property in Officer attracted residential developers clambering to secure prime development land to meet the pent-up demand for housing on Melbourne’s outskirts, according to selling agents Clinton Baxter, Mark Stafford and Julian Heatherich of Savills.
The property is expected to accommodate about 110 dwellings once developed. Perth-based Satterley is no stranger to the area, currently developing its 1,700 dwelling Arcadia estate in the suburb.
Baxter said the market for ready-to-develop land in the growth corridors of Melbourne now exceeds the previous peak of 2017, with developers unable to supply residential lots into the market quickly enough to meet demand driven by ultra-low interest rates and government stimulus incentives such as HomeBuilder.
Detached home approvals across the country have surged by almost 70% since the federal government’s HomeBuilder grant was introduced in June, and the scheme has combined with low interest rates and housing market momentum to push approvals to their highest levels.
“The sale price is a spectacular 1300% increase on the vendor’s original purchase price of $885,000 in 2005, demonstrating the incredible value that can be created by strategic land purchases in growth locations.”