Satterley Property Group – which turned 40 last year – has snapped up a prominent, relatively small residential development site, in Melbourne’s Officer.
The 3.56 hectare Urban Growth 1 zoned tract at 65 Mary Street is costing $11.26 million.
The vendor paid $885,000 in 2005, prior to it being gazetted for mass housing.
Savills’ Clinton Baxter said the deal reflects a land rate ($1251 per sqm) surpassing a 2017 peak.
Mark Stafford and Julian Heatherich were co-agents.
Officer is 50 kilometres south east of town.
Interstate, international investors
Abutting the Princes Freeway near the Cardinia Road outbound exit, 65 Mary St is expected to make way for about 110 homes.
It was marketed for its potential to accommodate more than 130.
Aged care developers, which could have fitted a facility with hundreds of beds, were also targeted.
The property is next to Satterley’s Arcadia estate and a block approved for a 72 lot subdivision (story continues below).
Pakenham Racing Club’s Club Officer is in the immediate vicinity.
Also nearby is the Lendlease developed shopping centre Lakeside Square – which a NSW investor acquired for $30.4m four years ago.
Six months ago, Japan’s Henley Homes paid Gold Coast’s Potter Group c$8m for a 4.1ha low density housing site in the suburb.
In Clyde North – neighbouring Officer South – Stockland last September spent c$180m on a 130.7ha block next door to its Edgebrook estate.
Satterley is Perth-based.
Developers can’t match demand: agent
“Developers are unable to supply residential lots into the market quickly enough to meet demand driven by ultra-low interest rates and government stimulus incentives such as HomeBuilder,” Mr Baxter said of the environment.
“The [65 Mary St] sale price is a spectacular 1300 per cent increase on the vendor’s original purchase price…demonstrating the incredible value that can be created by strategic land purchases in growth corridors,” he added.
“Whilst the vendor family had a range of compelling offers to select from, they felt most comfortable to sell to Satterley, which has been busy developing its highly successful 1700-dwelling Arcadia estate in Officer”.