Officer site collects $43m from neighbour

Artist’s impression of Yourland’s Officer Central, which can now double in size.

Yourland, backed by Japan’s Nippon Telegraph and Telephone Corporation (NTT), is paying $43 million for a site neighbouring its Officer Central housing estate.

Known as Lot 1 Rix Road, on the south east corner of Stephens, in Officer, the 12.28 hectare parcel was marketed to townhouse builders.

Mirvac recently paid $70m for a parcel abutting its Clyde North estate, Smiths Lane.

Fifteen dwellings are allowed per net developable hectare, according to the marketing agents, CBRE’s David Minty, Nathan Mufale and JJ Heng.

The deal values the land at $3.65m per ha – a suburb record, they added.

In April, Satterley snapped up an Officer site (outlined) neighbouring its Arcadia housing estate.

In a show of how fast land prices have moved in the growth corridor, the abutting 12.16ha tract, Lot 2, Rix Rd, traded for $27.235m in January, 2020.

On the south side of the Princes Freeway, a 12ha holding, 122 Stephens Rd, transacted for $6m in December, 2017 – prior to the adoption of a Precinct Structure Plan allowing it to be replaced with low density housing.

Half a billion of offers

Mr Minty said 18 offers were received for Lot 1, Rix Road – from a mix of local and offshore private and institutional developers.

“The property sold following the conclusion of a second and final round of an expressions of interest campaign,” he added.

“A capital allocation totaling over $500m was received as part of the first round of offers, demonstrating the strong level of active capital in the market at present aligned with residential development sites,” according to the agent.

There was a 26 per cent uplift in price between the rounds.

The result was $11m over reserve (story continues below).

Lot 1, Rix Rd had been held for more than 33 years.

Officer is about 48 kilometres south east of Melbourne.

Demand outstripping supply

While declining to comment about the specifics of the Rix Rd deal, Mr Mufale said several builders are looking to secure sites in the region for their development pipelines.

This “is unlikely to be satisfied in a market which is very short on appropriately zoned or embarked landholdings,” he added.

In nearby Clyde North, Dahua Australia is speculated to be paying c$100m for a 40.9ha parcel expected to yield about 740 housing lots.

The vendor, SightStone, spent $45.58m in 2017.

Near there, Mirvac is outlaying c$70m for a 30ha plot neighbouring its substantially bigger Smiths Lane community, which is under construction.

Last month Brown Property Group purchased a 115.75ha Clyde block for over $230m.

NTT and Yourland also recently spent c$100m on a 73.64ha tract at Donnybrook, north of Melbourne, with plans for a c1600-lot housing estate.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of