Chinese developer New Sky has moved into the house and land market, snapping up a 64-hectare housing project in Melbourne’s west with approval for 800 lots for about $60 million.
The deal comes as Melbourne’s land market becomes increasingly attractive to developers with population growth and affordability driving a record 22,000 lots sold this past financial year, according to the Victorian Planning Authority.
New Sky, which has a 60-storey tower development on Southbank called 88 Melbourne and another apartment project in Blackburn, bought the housing estate on Sayers Road in Tarneit known as ‘‘Golden Sayers’’ from prominent WA-based developer Golden Group, backed by Indonesian mining magnate Johan Lensa.
Demand for permitted sites on Melbourne’s fringe – as stock levels run low – presented Golden Group with the opportunity to take an early profit, nearly doubling its money on the $36 million it paid in 2011.
The former farm shot up in value turning its owner into a multi-millionaire – after the expansion of Melbourne’s Urban Growth Boundary in 2010 made it suitable for conversion to housing.