This article is from the Australian Property Journal archive
DEVELOPER ID Land has paid $140 million for farmland in Melbourne’s outer south-east that is expected to yield about 1,200 greenfield lots.
Buyers and developers in Victoria are growing their focus on greenfield lots with the land market closing out 2021 with record lot prices.
ID Land has acquired the three Clyde parcels from the Arnott family and Glenn Blundy, brother of billionaire retailer Brett Blundy.
The 59-hectare site at 200-230 Moores Road is in line for being rezoned to residential under the 1,099-hectare Clyde South Precinct Structure Plan in the coming years.
The sale was managed by Andrew Egan and Frank Nagle of Biggin & Scott Land.
ID Land previously completed two projects in the south east region’s Officer in 2017. Last year it acquired sites in Gisborne and Geelong’s Armstrong Creek, and made its first interstate acquisition in Walloon, Ipswich.
The Clyde site is ID Land’s biggest acquisition yet, taking its pipeline beyond $3.5 billion and 6,000 lots.
“It’s no secret that we’ve seen a significant shift in buyer priorities over the last two years, with more younger buyers capitalising on the economic tailwinds for FHBs to secure their first home – we are expecting this activity to remain relatively strong, underpinned by the affordable nature of the growth area land and inner-city townhouses,” ID Land’s joint managing director Jeffrey Garvey said.
“As government investment in transport, education and infrastructure, as well as private enterprise activity across retail, housing and amenity, remains strong in growth areas such as Clyde, we expect these regions to remain sought after.”
RPM data shows south east growth corridor, consisting of the Casey and Cardinia local government areas, increased its share of total greenfield sales across Melbourne to 23% in December quarter, while annual lot sales rose by 11%.
Clyde is in the City of Casey, where the median lot price increased by 12% to surpass $400,000 at the end of 2021, the first instance recorded by a municipality in the growth areas.
ID Land is part of the ID Corp group of companies that includes homebuilder Shape Homes and fund manager Title Capital.
“Similar to last year’s acquisition in Walloon, Queensland, this major site in Clyde provides an opportunity for us to deliver residential lots to a market experiencing pent-up demand, while also allowing Title Capital investors opportunities to co-invest in the portfolio alongside Jeff and myself,” said Matthew Belford, ID Land joint managing director.
Burbank has just offloaded a 26.23-hectare development site for the Clyde Major Town Centre for $67.65 million, while last year Chinese-backed developer Dahua Australia stumped up $100 million for 41 hectares of land in Clyde North, and ASX-listed Mirvac bought 105 Smiths Lane in the same suburb for $70 million.
