This article is from the Australian Property Journal archive
ASPEN has entered conditional contracts to acquire a residential land site in Mount Barker, under a Mortgage in Possession sale.
Located at 32 Sims Rd, the land is approximately 11.5 hectares and a purchase price of $4.51 million, settlement is expected after the new title is created by the end of 2020.
Purchase price is approx. $400,000 per hectare, $46,000 per currently approved residential lot and $23,000 per planned lot.
Aspen currently has acquired sites alongside Adelaide Caravan Park, Highway 1, Coorong Quays and CREST at Woodside. And intend to use the same local employees, consultants and contractors on the new Sims Road property.
The Mount Barker area has a population of more than 37,000, growing at around 3% a year, it is located in the Adelaide Hills, which is 33 kilometres and a 35-minute drive from the Adelaide city centre.
The site lies in the Mount Barker Growth Area, a policy defined area devised by the SA government to boost supply of new residential accommodation. It is forecasted that the population in this area will grow by approximately 8,000 people over the next 10 years, with 1,800 of that population made up of people over 50.
As of the 2016 census the population of over-50s has been just above the national average at 35%, with overall population growth from 2011-2016 sitting at 12.2% compared to the nation’s 8.8%.
This continued growth in the area has been fostered by government funding of $50 million for new aquatic and sports centres.
The 97 residential lots being acquired by Aspen for development on this site, are approx. 650sqm on average and lots already developed in the estate have sold for an average price of approx. $180,000.
Subject to council approval, Aspen plans to instead develop a land lease community and residential lots. With plans to price land lease house under $300,000 and residential land lots from under $100,000, compared to the median local house price of $425,000 and new retirement village houses being fold under a deferred management fee model.
Density at the site would be around 17 lots per hectare and around 200 lots could be developed on the site with a minimum of 200sqm per lot. This will allow space for public parks and reserves.
If the final scheme is approved, this acquisition will increase Aspen’s on-balance sheet development pipeline 2-3 times by number of lots.
