Stockland pays c$50m for Melbourne housing site

Artist’s impression of the Grand Central estate, near a proposed town centre and train station (top).

Stockland has picked up a low-density housing site in Melbourne’s west Tarneit.

The 38 hectare Sayers Road parcel, the balance of the Grand Central estate, can yield about 493 homes.

It is costing c$50 million from New Sky Group.

The land is classified within the council’s Riverdale Precinct Structure Plan; in time dwellings will be surrounded by a train station (Riverdale), town centre and indoor recreation facility.

This pocket of Tarneit is about 33 kilometres from the city.

Stockland stocks up

Stockland Communities chief executive officer Andrew Whitson said “this acquisition aligns with our strategy to re-stock our residential pipeline early in the cycle, in target corridors with strong demand fundaments and expected total returns above our hurdle rates”.

The parcel is close to transport, schools and parks, the executive added.

“With record low interest rates continuing to underpin the residential market over the medium term and customer preference for detached dwellings remaining strong across Melbourne’s greenfield areas, the acquisition of this market-ready project means we can get more new land to market to meet this demand”.

Biggin & Scott Land’s Andrew Egan and Frank Nagle represented New Sky (story continues below).

Stockland will take on marketing and building upon settlement.

In nearby Truganina, the group holds two low-density housing estate sites – Grandview and Mount Atkinson (it is also coproposing a $2 billion business park in this suburb).

Last year the developer launched a townhouse project replacing several Altona North factories.

Stockland also paid c$180m for a 130.7ha site abutting its Edgebrook low density community in the city’s south east Clyde North.

North of town the builder holds assets at Craigieburn and Donnybrook. Another, in Brunswick, is earmarked for apartments.

Last March the group outlaid $415m for control of the $4b The Gables estate, in Sydney’s Box Hill.

Nine months later it spent $193m on a 700ha Brisbane housing block.

New Sky recently sold Time & Place a permit-ready Southbank apartment site for $29m.

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Marc Pallisco

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