Greencor Pays $26 Million For Wollert Farm, Melbourne

The northern Epping corridor, as it is known, has seen rampant residential activity in recent years driven by first and second-time home buyers.

Selling agent Andrew Egan of Biggin Scott Commercial and Land declined to comment on the Bodycoats Road deal. Especially since changes to the Urban Growth Boundary in June 2010, the agency has been busy selling outskirts farms to builders and others building land banks, usually in off-market transactions.

In late 2010, Stockland paid two sisters $300 million for the Lockerbie Sheep Station in Kalkallo, the next suburb north of Wollert. Stockland is expected to build a town centre alongside a railway station as part of its multibillion-dollar redevelopment of the 1121-hectare farm.

Developers release land in limited stages – often less than 20 blocks per biannual period – so as to preserve the high prices that they charge what is often a limited number of buyers.

The practice of controlling supply is not policed and commentators argue that profits are being put ahead of affordability (often tiny subdivided blocks on the outskirts sell for some $150,000). They worry that in 2012, as was the case in 2008, the move will result in capital value losses for home buyers who build on the outskirts, typically using government-backed incentives to enter the market.

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Marc Pallisco

Marc Pallisco

A freelance property writer and analyst, Marc is a co-founder of realestatesource.com.au.

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