Over recent years – and particularly since the former state government started regularly revising Melbourne’s Urban Growth Boundary – farmers and other land owners in the 30 kilometre belt from Dandenong to Pakenham have been offloading sites to developers, with many new housing estates finding their way to the market this year.
In March, the Pakenham Racecourse site sold to local developer The Corcoris Group for $38 million, and will also become a housing estate.
The timing of the latest Pakenham listing comes at a particularly bleak point in the housing sector, with many “house-and-land package” based estates reporting significantly slower sales, despite the low interest rate environment.
Moving forward, the outer suburban housing sector may also be negatively affected by stagnant or negative capital gains.
But the downturn will do little for housing affordability, with the Housing Industry Association recently confirming average mortgage costs for new homes will rise an average $43 per month because of the newly announced carbon tax adding almost $13,000 to construction costs.