TARNEIT MELBOURNE GROVE ESTATE
21ST CENTURY Due Diligence Kit PROPERTY CONTENTS
THE ESTATE 3
THE GROWTH AREA 4
LOCATION MAP 5
MASTERPLAN 6
LOCAL AMENITIES 7
DEMOGRAPHICS 8
RESIDENTIAL DEVELOPMENT FORECAST 9
INVESTMENT MERITS 10
STATE OF VICTORIA SUMMARY 11
STATE OF VICTORIA ECONOMY 12
LOCAL PROJECTS 13
LOCAL INFRASTRUCTURE 14
RENTAL PROPERTIES IN LOCAL AREA 16
NEWS ARTICLES 17
LAND SUPPLY PIPELINE 33
2 21ST CENTURY PROPERTY THE ESTATE
Located off Doherty's Road, Melbourne Tarneit is also home to several childcare Grove Estate offers everything you could centres, a police station, medical centre, wish for and more. The first stage will be train station and shopping centre. 10 acres encompassing 60 lots. These Lots will offer 3-5 year options and the This development is within the current estate offers a great balance of a quiet, Urban Growth Boundary and the council Stage 1 will yet convenient life. has planned for it to be rezoned to residential after 2017-18. It's located on A rural-urban fringe suburb located PS no 1088. be 60 lots within the growth area of Wyndham City, the Melbourne Grove Estate is well For more detailed information about over 10 acres. supported by transport infrastructure with the PS 1088 that this development falls nearby bus and train services providing under visit www.mpa.vic.gov.au/Tarneit_ an easy transit to the Melbourne CBD North. and Geelong. Tarneit also has a number of schools established within its boundaries, including Thomas Carr College, Baden Powell Prep - Year 9 College and Tarneit Central College. There has been much residential growth occur in the Thomas Carr District, with other schools and shopping centres planned for construction. Construction of stage one of Tarneit Central Shopping Centre, on the south east corner of Derrimut and Leakes Roads, is expected to begin in 2015 and take 18 months to complete.
Sources: Wikipedia
3 21ST CENTURY PROPERTY THE GROWTH AREA
BOUNDARY ROAD
BOUNDARY ROAD
1089 TARNEIT NORTH CONSULTATION APRIL / MAY 2014
k e e r C 1088 OAKBANK n o t le SCHEDULED FOR PREPARATION 2015-2017 e k Oakbank PSP is expected to include: S TARNEIT ROAD 1090 TRUGANINA DOHERTYS ROAD DERRIMUT ROAD • Four local sporting reserves and a PLANNING PANEL REPORT RECEIVED MAY 2014 possible regional sporting reserve
• Three Government Primary School DOHERTYS ROAD DAVIS ROAD • One or two Government Secondary Schools. D ry Cree k n
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MORRIS ROAD o
F
Regional Rail Link
LEAKES ROAD F O
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S
Y
T ISON ROAD H
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A Regional Rail Link LEAKES ROAD D
SAYERS ROAD
1091 RIVERDALE PLANNING PANEL REPORT RECEIVED MAY 2014
Residential Business with residential Mixed use
H Office O G AN Light industrial S RO AD Government Primary school Government Secondary school Potential Non-Govt School
W e r r ib Local sporting reserves e e
R Local parks i v e r Waterway corridor Note: This plan is subject to change. Refer to MPA web site ARMSTRONG ROAD Waterway (www.mpa.vic.gov.au) or contact Mark Brennan or Wyndham North PSPs (DRAFT) Dane Logan on 9651 9600 for further information. Status May 2014 Draft for discussion purposes only. Details subject to change without notice.
0 200 400 1,000
BALLAN ROAD
4 21ST CENTURY Sources: www.mpa.vic.gov.au PROPERTY LOCATION MAP
Horsham Bendigo
Seymour Mt Hotham
Ararat
Ballarat Melbourne TARNEIT Geelong Moe
0 300
Tarneit is under Kilometres 30 minutes to Melbourne CBD 5 21ST CENTURY PROPERTY MASTER PLAN
PROPOSED PLAN OF SUBDIVISION 1491 DOHERTY'S ROAD, MOUNT COTTRELL
17 370m² 18 19 20 21 16 375m²
385m²
420m² 15 370m² ROAD
395m² 415m²
14 390m² 24 23 22 13 345m² 25 1155m²
345m²
305m² 12 355m² 315m²
11 310m² NORTH ROAD 10 270m² 26 30 9 270m² 395m² 28 29
8 315m² 27
336m²
400m² 400m² 400m² 7 375m² 34 33 32 31 6 375m² 400m²
WEST 336m²
400m² 5 375m² 35 400m² 395m² LANE 1 2 3 4 MIDDLE ROAD
36 37 38 39 40 41 42 43
190m²
195m² 195m² 195m²
225m² 225m² 225m²
225m² 225m² 225m² 225m² LINK ROAD 235m²
ELECTRICITY EASEMENT
ROAD (IF REQUIRED)
TEMPORARY ACCESS
44 45 46 47 CRESCENT
203m² 203m² 203m² 203m² 62 63 64 65 LANE 7287 01 360m² 360m² 360m² 360m² 375m² 48
315m² 49 61 60 59 58 270m² 50 330m² 330m² 330m² 330m² 270m² 51 SOUTH ROAD
POWER 375m² HEAD & HUMPHREYS6 52 54 55 56 57 ST 375m² 53 295m² 300m² 300m² 300m² 21 CENTURY PROPERTY LOCAL AMENITIES
Distance from estate to various local amenities:
CHILDCARE SHOPPING CENTRES SERVICES Learning Ladder Day Care - 3.2km Wyndham Village Shopping Centre - Post Office - 8.4km 6.4km Future Kids Childcare - 3.9km Caroline Springs Shopping Centre - SPORT & RECREATION Goodstart Early Learning - 6.7km 17.3km Gym - 6.4km PRIMARY EDUCATION Brimbank Shopping Centre - 17.4km Fraser Street Reserve - 8.2km Cambridge Primary School - 6.6km House of Golf - 11.9km SUPERMARKETS Derrimut Heath Primary School - 6.6km Coles - 5.1km Swimming & Health Centre - 13.5km Mossfiel Primary School - 8.5km IGA - 5.7km Leisure Centre - 20.9km Truganina South Primary School - 8.9km Safeway - 6.9km HEALTH & WELLBEING SECONDARY EDUCATION Werribee Mercy Hospital - 10.9km Tarneit Senior Secondary College - DINING Derrimut Medicals - 13.8km 2.4km Shiraaz Ferntree Gully Indian Restaurant - 5.4km Western Family Medical Centre - 18km Thomas Carr College - 6.4km Subway - 10.6km Hoppers Crossing Secondary College - TRANSPORTATION 8.3km Alankrita Restaurant - 14.1km Hoppers Crossing Railway Station - Fresh Chilli Thai Restaurant - 17.5km 10.5km TERTIARY EDUCATION Victoria University Sunshine Campus - ENTERTAINMENT Melbourne Airport - 33.8km 20km Werribee Plaza Tavern - 8.3km Victoria University Footscray Campus - Cinema - 8.3km 23.6km Ten Pin Bowing - 13.7km
Stadium - 18.9km
Sources: Whereis.com
7 21ST CENTURY PROPERTY DEMOGRAPHICS
MEDIAN AGE MEDIAN WEEKLY INCOME 29 YEARS $1,563
AGE STATISTICS FAMILY STATISTICS
60+ 0-12 Not 40-59 Married 1. 0 - 12 Years (24.25%) Married 13-19 2. 13 - 19 Years (9.03%) 3. 20 - 39 Years (40.42%) 20-39 De Facto 4. 40 - 59 Years (20.11%) 5. 60+ Years (6.74%)
NATURE OF OCCUPANCY TYPE OF DWELLING Semi/Terrace Flat
Unoccupied Owned Outright
Owned with Rented Mortgage Separate House
8 21ST CENTURY Sources: Myboot PROPERTY RESIDENTIAL DEVELOPMENT FORECAST
9 21ST CENTURY Sources: Forecast ID PROPERTY INVESTMENT MERITS
Tarneit has many of the factors savvy The surrounding infrastructure continues 5 YEAR GROWTH 19.14% investors should seek, including a fast to grow to accommodate the residents growing population, infrastructure and and includes a number of schools 12 MONTH GROWTH 5.07% efficient transport links. including Thomas Carr College, Baden Powell Prep - Year 9 College and Tarneit GROSS RENTAL YIELD 4.41% Tarneit has an ongoing growing Central College. population. The population of Tarneit is 21,690 and is expected to grow to There has been much residential growth 63,512 by 2031. occurring in the Thomas Carr District, with other schools and shopping centres Tarneit is now home to many new estates, planned for construction. Construction promising to support the forecast for an of stage one of Tarneit Central Shopping increased population. Centre, on the south east corner of In 2010, the Wyndham Bus Network was Derrimut and Leakes Roads, is expected extensively upgraded and now caters for to begin in 2015 and take 18 months to commuters from Tarneit. complete. Wyndham Village Shopping A new Centre, in the suburb's south, was A new railway line currently under completed in 2005 to serve the exploding construction, the Regional Rail Link, travels population in the immediate area. railway line is from West Werribee through Tarneit to Deer Park and will include a new railway Tarneit Town Centre, to be developed currently under station at Tarneit. The new station will over the next 10 years, is expected to be provide a much faster service than the located in the area loosely bounded by construction current Werribee railway line, which must Derrimut Road to the west, Leakes Road to pass though Altona and Footscray. the south, Skeleton Creek to the east and Dry Creek to the north. It will have car parking with 1,000 spaces, ensuring Tarneit becomes a prime regional area for those who commute to the city on a regular basis. Regional Rail Link will also connect the Melton and Werribee railway lines and re-direct Geelong V/Line trains from the Werribee Line. Regional Rail Link will open in April 2015, with Tarneit Train Station coming under metropolitan zone 2.
Source: Your Investment Property Mag, Wikipedia, www.regionalraillink.vic.gov.au
10 21ST CENTURY PROPERTY STATE OF VICTORIA SUMMARY
Victoria is a state in the south-east of The 2011 Australian census reported There are also tourist trams operating Australia. Victoria is Australia's most that Victoria had 5,354,042 people over portions of the former Ballarat and densely populated state and its second- resident at the time of the census. The Bendigo systems. There are also tramway most populous state overall. Most of Australian Bureau of Statistics estimates museums at Bylands and Haddon. its population is concentrated in the that the population may well reach 7.2 area surrounding Port Phillip Bay, which million by 2050. Melbourne Airport is the major domestic includes the metropolitan area of its and international gateway for the state. capital and largest city, Melbourne, which More than 75% of Victorians live in Avalon Airport is the state's second is Australia's second-largest city. Melbourne, located in the state's south. The busiest airport, which complements greater Melbourne metropolitan area is Essendon and Moorabbin Airports to The economy of Victoria is highly home to an estimated 4.17 million people. see the remainder of Melbourne's air diversified: service sectors including Leading urban centres outside Melbourne traffic. Hamilton Airport, Mildura Airport, financial and property services, health, include Geelong, Ballarat, Bendigo, Mount Hotham and Portland Airport are education, wholesale, retail, hospitality Shepparton, Mildura, Warrnambool, the remaining airports with scheduled and manufacturing constitute the majority Wodonga and the Latrobe Valley. domestic flights. There are no fewer than of employment. Victoria's total gross 27 other airports in the state with no state product (GSP) is ranked second Victoria has the highest population density scheduled flights. in Australia, although Victoria is ranked in any state in Australia, with population fourth in terms of GSP per capita because centres spread out over most of the state; The Port of Melbourne is the largest port of its limited mining activity. only the far northwest and the Victorian for containerised and general cargo in Alps lack permanent settlement. Australia, and is located in Melbourne Culturally, Melbourne is home to a on the mouth of the Yarra River, which number of museums, art galleries and The Victorian road network services is at the head of Port Phillip. Additional theatres and is also described as the the population centres, with highways seaports are at Westernport, Geelong, "sporting capital of Australia". The generally radiating from Melbourne and Portland. Melbourne Cricket Ground is the largest and other major cities and rural centres stadium in Australia. The ground is with secondary roads interconnecting also considered the "spiritual home" of the highways to each other. Many of the Australian cricket and Australian rules highways are built to freeway standard football, and hosts the grand final of the ("M" freeways), while most are generally Australian Football League (AFL) each sealed and of reasonable quality. year, usually drawing crowds of over Melbourne has the world's largest tram 95,000 people. Victoria includes eight network as well as being a popular public universities, with the oldest, the form of public transport, over the last University of Melbourne, having been few decades trams have become one of founded in 1853. Melbourne's major tourist attractions.
Source: Wikipedia
Melbourne is home to Australia's largest and busiest seaport which handles more than $75 billion in trade every year 11 21ST CENTURY PROPERTY STATE OF VICTORIA ECONOMY
Victoria is Australia’s second largest MANUFACTURING The 2,000 kilometres of Victorian economy, producing $317 billion in coastline with hundreds of beaches. Machinery and equipment manufacturing output in 2011 and accounting for 23% is the state's most valuable manufacturing The Goldfields region featuring the of Australia’s Gross Domestic Product. activity, followed by food and beverage historic cities of Ballarat, Beechworth, Metropolitan Melbourne accounts for products, petrochemicals and chemicals. Bendigo and more. approximately 80% of the Victorian economy and its largest employing sectors Prominent manufacturing plants in Natural attractions, such as The are health care, social assistance services, the state include the Portland and Twelve Apostles, Wilsons Promontory, manufacturing and retail. At June 2009, Point Henry aluminium smelters; oil The Grampians, the Buchan Caves around 96% of employing businesses in refineries at Geelong and Altona; a and the Gippsland Lakes. Victoria were small businesses, employing major petrochemical facility at Laverton; The Dandenong Ranges (in up to 19 people. and Victorian-based CSL, a global particular the Puffing Billy Railway). biotechnology company that produces Around 30% of Melbourne’s jobs are vaccines and plasma products. The Bellarine Peninsula which located in inner Melbourne suburbs features historic resort towns such as and the remaining majority of workers Victoria also plays an important role in Queenscliff. are spread across the broader suburbs providing goods for the defence industry. (middle, outer and growth areas). In the The Surf Coast which features decade prior to 2000, labour productivity famous beaches such as Bells Beach, in Victoria grew strongly, increasing faster MINING Torquay and Lorne than the Australian average. Mining in Victoria contributes around Mornington Peninsula, particularly for $3 billion to the gross state product. The its wineries and secluded beaches, In 2011 Victoria’s goods and Victorian mining industry is concentrated Arthur's Seat and the coastal services exports were worth almost on energy producing minerals, with attractions of Portsea and Sorrento. $34 billion brown coal, petroleum and gas Victoria’s trade with other Australian accounting for nearly 90% of local Yarra Valley (in particular Healesville states and territories was valued at production. The oil and gas industries Sanctuary and wineries). are centred off the coast of Gippsland in approximately $99 billion in 2010-11 Great Ocean Road, which features the state's east, while brown coal mining The Twelve Apostles, historic towns Victoria accounts for over 25% of and power generation is based in the of Port Fairy and Portland, cliffs and Australia’s total expenditure on Latrobe Valley. business research and development whale watching and resort towns such as Lorne. In 2009 national online retail sales SERVICE INDUSTRY for all sectors of the economy were The Victorian Alpine Region The service industries sector is the fastest estimated to have totalled between The Central Victorian Highlands, $19 and $24 billion. growing component of the Victorian economy. It includes the wide range 'Highcountry' are very well known for of activities generally classified as winter sports and bushwalking AGRICULTURE community, social and personal services; Wine regions across the entire state. More than 26,000 km2 of Victorian finances, insurance and property services, farmland are sown for grain, mostly in the government services, transportation and Other popular tourism activities are state's west. More than 50% of this area is communication, and wholesale and retail gliding, hang-gliding, hot air ballooning sown for wheat, 33% for barley and 7% for trade. Most service industries are located and scuba diving. oats. Victorian farms produce nearly 90% in Melbourne and the state's larger Major events also play a big part in of Australian pears and third of apples. It is regional centres. tourism in Victoria, particularly cultural also a leader in stone fruit production. tourism and sports tourism. Some of More than 14 million sheep and 5 TOURISM which include the V8 Supercars and Australian Motorcycle Grand Prix million lambs graze over 10% of Some major tourist destinations in at Phillip Island, the Grand Annual Victorian farms, mostly in the state's north Victoria are: and west. Steeplechase at Warrnambool and The metropolis of Melbourne and the Australian International Airshow at Victoria is the centre of dairy farming in the attractions of the city centre such Geelong and numerous local festivals Australia. It is home to 60% of Australia's as Crown Casino, Melbourne Zoo, such as the popular Port Fairy Folk 3 million dairy cattle and produces nearly Melbourne Museum, the Melbourne Festival, Queenscliff Music Festival, two-thirds of the nation's milk. The state Aquarium, ScienceWorks, and many Bells Beach SurfClassic and the Bright also has 2.4 million beef cattle. many more. Autumn Festival. 12 21ST CENTURY Source: Wikipedia, www.planmelbourne.vic.gov.au PROPERTY LOCAL PROJECTS
TARNEIT RAILWAY STATION Sustainability features such as solar WERRIBEE SPORTS AND FITNESS panels, energy efficient lighting and Regional Rail Link: Deer Park - West CENTRE REDEVELOPMENT use of rain water Werribee Junction includes two new $47 million railway stations in the growing suburbs of A baby changing facility Wyndham Vale and Tarneit. The Werribee Sports and Fitness Centre Maximised visibility of passengers (WSFC) will be transformed into the Tarneit railway station is located near the for station staff by minimising blind largest indoor court sporting facility in intersection of Leakes Road and Derrimut spots. Melbourne’s western suburbs. Road. It features elevated platforms with When Regional Rail Link is complete, V/ pedestrian access under the rail bridge. The redevelopment will include: Line trains travelling between Melbourne Tarneit railway station includes: and Geelong will be stopping at the Expansion from 6 to 12 indoor new Tarneit railway station, allowing courts, including a show court with An architect designed station passengers to board and alight in either seating for up to 1500 spectators. building and landscaping direction. A new state of the art health club A bus interchange and taxi rank with programmable space, gym floor, spin room and members lounge. ‘Kiss and ride’ (pick up/drop off) bays Expansion and redevelopment of Parking spaces for 400 cars, with crèche and administration areas. the ability to build more spaces as demand grows New foyer and entrance with self- help access control. Two dedicated regional tracks with room for additional tracks for future 4 new outdoor netball courts. rail network expansion New cafe with indoor and outdoor Bicycle storage cage and external seating. hoops Expanded and improved amenities, CCTV cameras on the platforms, storage and function rooms. station building, forecourts and car park Dedicated table tennis space. Passenger information displays and clocks on each platform and at the ticket office
Source: www.regionalraillink.vic.gov.au
Links between Melbourne's west and the city centre will be improved, making the western region more attractive to businesses and employees. 13 21ST CENTURY PROPERTY LOCAL INFRASTRUCTURE
WERRIBEE PLAZA Werribee Plaza has been a favourite local meeting place for almost 25 years. Werribee Plaza boasts a great mix of fashion, homewares and convenient, everyday services and a comprehensive selection of fresh food. Lots of natural light, wide malls and 220+ stores all on one level, not to mention free parking makes Werribee Plaza much more than an enjoyable place to shop.
Source: ww.werribeeplaza.com
14 21ST CENTURY PROPERTY LOCAL INFRASTRUCTURE
VICTORIA UNIVERSITY SUNSHINE CAMPUS Victoria University is well known for Sunshine campus hosts building and preparing its students not just for a construction trade courses, a range career, but for life. of engineering courses and the Adult Migrant English Program (AMEP). Through Victoria University's strong VU is one of the industry connections and leadership A world class trade training centre called in sport education, they provide Construction Futures opened in 2012. few universities opportunities for every individual to This brand new $44 million state-of-the- achieve success on their own terms. art industry training facility is home to the in the country Trades College’s construction program. As one of only a few Australian The building is flexible and adaptable, universities to offer both vocational and can be modified to suit industry to offer both training (TAFE) and higher education demand and emerging technologies. with direct pathways between the vocational two, the range of courses includes apprenticeships, certificates, diplomas, training degrees and postgraduate programs. There are more than 45,000 students and higher from around the world studying at one of the ten campuses in Melbourne’s west education with and the CBD - as well as an international campus in Sydney. highly accessible pathways from one to the other.
Source: www.vu.edu.au, cefpi.org.au
15 21ST CENTURY PROPERTY RENTAL PROPERTIES IN LOCAL AREA
These example properties have similar comparable qualities and are located in Tarneit. These properties give an indication as to what rental income could be achieved in the Tarneit area.
These example properties are land located in Tarneit. These properties give an indication as to how much land can cost in Tarneit.
16 21ST CENTURY Source: realestate.com.au PROPERTY NEWS ARTICLES
The Melbourne suburbs investors are most active in Robert Larocca - 21 August 2014
Source: RP Data
What drives investment activity in one suburb over capital gains prospects given the high level of supply. another? Is it pursuit of a high yield or is it a desire for Conversely, an established suburb such as Clayton good capital gains? has a high level of investors and very low yield, presumably because the market is purpose-built These are often debated topics and interestingly the around students. data suggests there is not one clear-cut answer. Finally, in the outer suburbs the investment activity For instance, a review of the proportion of houses is again concentrated in growth suburbs which are owned by investors in the inner, middle and outer seeing a high rate of new home construction. For suburbs shows a high level of investment in suburbs example Point Cook, Tarneit and Truganina. with low and high yields. The research suggests that there is more to the In the inner city, those suburbs within a 10 kilometre decisions of investors than suburb level analysis radius of the CBD is where the highest level of of yield and historical capital gains. Issues such as investors can be found in Carlton North, followed by the level of supply is important, some suburbs are North Melbourne and Richmond. Carlton North has popular simply because they provide affordable stock a historically high level of appreciation and low yield for investors. Others are popular because investors are whereas Richmond has a very low appreciation and capitalising on a local factor, such as a university. higher yield. Possibly what’s more important is that investment In the middle suburbs, those between 10 and 20 decisions are also made after consideration of the kilometres from the CBD, the investor activity is actual house and its relative location and price. highest in growth suburbs with new housing – Laverton, Derrimut and Deer Park. These suburbs have good yield according to the research but lower 17 21ST CENTURY PROPERTY NEWS ARTICLES
Wyndham bus network overhaul planned for 2015
Adam Carey - 25 August 2014
Buses, for many years the poor cousin of it did for eastern suburbs residents. Melbourne's public transport system, will "There's been a huge backlash there because get a boost early next year when five new, the changes weren't explained to passengers higher-frequency routes start up in time and the public was virtually locked out of with the opening of the Regional Rail Link the process of deciding what the changes between Werribee and the CBD. ought to be," Dr Morton said. The new bus routes will run every 20 "Ultimately public transport is run for the minutes into some of the least serviced travelling public and it makes sense for the pockets of Melbourne, to and from two new public to be involved." V/Line stations that are being built in the outer west. Dr Morton said Wyndham's bus network was ripe for change, its shortcomings The railway stations will serve the suburbs representative of those that bedevil the of Tarneit and Wyndham Vale, where wider suburban network; sparse scheduling, housing estates are being built for tens circuitous routes and a failure to connect of thousands of people moving into with trains. These problems combine to Wyndham, one of the fastest-growing force people into their cars, he said. municipalities in Australia. Cameron Nash is a Swinburne University The $4.3 billion Regional Rail Link is due student who lives in Wyndham Vale. He to open in April, and will untangle rail lines takes the bus to Werribee station on his way shared by Metro and V/Line, giving each to classes, a winding 25-minute journey. The their own dedicated paths. Bus routes and trip would take him five minutes in his car, timetables along the 45-kilometre rail line but he rides the bus because parking at the will change in conjunction with its opening, station is a nightmare, he said. including the creation of five new, direct routes in Wyndham. "What I'm looking for in a bus route is something that is more direct, connecting The buses will shuttle passengers every 20 up with the trains and more frequent," Mr minutes in peak times between stations on Nash said. "Forty minute frequency just the Werribee line and the new stations at doesn't cut it, especially not in an area like Tarneit and Wyndham Vale. They will run Wyndham." along main roads, avoiding slow journeys through back streets. LeadWest chief executive Craig Rowley said there were 12,000 households in Wyndham Public Transport Victoria will on Monday located more than 400 metres from a bus hold the first of several community stop, and extending services into those areas information sessions about the new bus was critical. network, which will also involve changes to less frequent neighbourhood buses. Public Transport Victoria spokeswoman Helen Witton said the authority wanted to The authority has been criticised over make Wyndham's buses simpler and more changes it imposed without consultation last direct. month to bus routes in Melbourne's eastern suburbs. "We have tried to design a network that is both useful and convenient for more Public Transport Users Association people in Wyndham, and that gets them to president Tony Morton said that by going their destination as quickly as possible," Ms out to the public first, PTV was handling its Witton said. bus changes in Wyndham much better than 18 21ST CENTURY PROPERTY NEWS ARTICLES
First home owners grant Nila Sweeney
It’s not often someone gives you $7,000 for nothing. There is no tax payable on the grant and the state Only one grant is payable per eligible transaction However, that’s what you’ll get as part of the first home government administers it with the help of a number of (contract) regardless of the number of applicants Owner Grant (FHOG). Originally introduced in 2000, approved banks and lending institutions – although each involved in the transaction. If you have a spouse or the grant was doubled to $14,000 during 2008 and state has its own variations on the grant regulations. partner who has previously received a grant in any state 2009 to support new homebuyers through the global The grant is not means-tested, but it is restricted by or territory of Australia, you will not be eligible. financial crisis. While the grant has returned to its property price in some states – and it almost goes The wording around living in the property in the first year original figure of $7,000, there are still a range of extra without saying that you can only access the grant once. also deserves some clarification. Essentially, at least one of state-specific incentives available for first homebuyers The following eligibility requirements apply to the grant: the applicants for the grant must live in the property for a which can significantly assist with the task of getting • You must be an Australian citizen or permanent resident continuous period of at least six months, which must begin on the property ladder. at any point within 12 months of settlement. • You must not have owned property in this country Indeed, it’s arguable that in the current market the So, a buyer could live in the property for the first six lower $7,000 grant is just as, if not more, valuable than • You must have lived in Australia for at least six months of those 12 months, they could live there the enhanced grant. The boost to the grant was blamed months between the three-month and nine-month points, or for inflating the price of entry-level properties, with • You must be over 18 years of age could start living there in month 11 – as long as he or buyers rushing to take advantage of it which in turn she stays there for a continuous period of six months. pushed prices up due to the demand. In the current, • You must be buying or building your first property as a person, not as a company or trust If it is a new home it must be occupied under the same less frantic market, first homebuyers could find terms, within 12 months of construction. themselves in a position to get a better deal than they • Neither you or your spouse can have claimed this would have a couple of years ago, while still benefiting grant previously In terms of payment, the grant usually gets approved from the FHOG. at the time of settlement. Typically, the grant will be • An eligible home must be located in Australia and be paid direct to your mortgage lender and most major How does it work? a new or established house, home unit, flat or other lenders are authorised to receive the grant on your The FHOG is a national scheme, funded by the states and type of self-contained fixed dwelling that lawfully can behalf. If you are building a new home, the grant will territories and administered under their own legislation. be used as a place of residence be approved once your lender issues the first scheduled While the basic $7,000 grant applies across all states, • You must live in the property for at least six months, loan payment. some states and territories also provide their own starting within the first 12 months immediately after additional grants and stamp duty subsidies, including purchase additional benefits for new construction and new homes in regional areas.
State Maximum FHOG Other Concessions Benefits Available NSW $29,490.00 $7,000 The Home Builder Bonus (HBB) and First Home Plus (FHP) schemes provide exemptions on stamp duty. The HBB provides a full exemption on duty for off-the-plan homes up to $600,000, worth $22,490. FHP provides a full exemption for any property up to $500,000 and a partial exemption up to $600,000 (the maximum saving available under this scheme is $17,990) QLD $19,750.00 $7,000, plus an additional grant of $4,000 for those The Queensland government also operates a range of stamp duty exemptions and concessions for home owners, building or buying a new home in certain areas of first homebuyerrs and first home builders. First homebuyers receive a discount of up to $8,750 for properties up regional Queensland. The commencement date must to $505,000; vacant land up to the value of $250,000 receives a full exemption. be before 30 June 2011. Neither grant is available for properties worth more than $750,000. VIC $26,500.00 $7,000 – not available for properties worth more than Buyers may also be entitled to receive an additional payment of $13,000 (for new homes only), known as the $750,000. First Home Bonus. To be eligible to receive the bonus the purchase price of the property must not exceed $600,000. For contracts entered into for the purchase or construction of a new home in a regional municipality in Victoria, an additional $6,500 regional bonus is also available (in addition to the above bonuses). WA $28,665.00 $7,000 – not available for properties worth more than Stamp duty concessions apply to first homebuyers. There is a full exemption for properties up to $500,000, and $750,000. a concessional rate up to $600,000. The Home Buyers Assistance Account also provides first homebuyers with financial support. The scheme provides a grant of up to $2,000 for the incidental expenses of first homebuyers when they purchase an established or partially built home through a licensed real estate agent for a purchase price of $400,000 or less. The grant can be used for mortgage registration fees, solicitor and/or settlement agent fees, valuation fees, inspection fees, loan establishment fees, mortgage insurance premiums and lending institution fees associated with lodging the application. SA $15,000.00 $7,000 up to a maximum property value of $575,000. A There are no other concessions. bonus grant of up to $8,000 is available to buyers who enter into a contract to purchase or build a new home. ACT $19,780.00 $7,000 The Home Buyer Concession Scheme allows eligible homebuyers earning under a certain income threshold to pay a token duty of $20 on properties under $360,000 and a concessional rate up to $445,000. NT $33,730.00 $7,000 – not available for properties worth more than The Northern Territory government provides a stamp duty First Home Owner Concession (FHOC) of up to $750,000. $26,730 to persons purchasing their first home or land on which to build their first home. The FHOC is not means-tested, but the purchase price must not exceed $750,000. TAS $11,000.00 $7,000 The Tasmanian government applies a concessional rate of stamp duty for first homebuyers of up to $4,000 for properties up to a value of $350,000. 19 21ST CENTURY PROPERTY NEWS ARTICLES
Melbourne urban sprawl to extend into six new suburbs over next 20 years Larry Schlesinger - 14 June 2012
4,600 new homes for 13,000 new “The completion of this review will lead to residents in Lockerbie North urban growth boundary modifications to (incorporating parts of Mitchell ensure adequate long-term land supply and and Whittlesea) along with a new enable planning for population growth to be train station, a new north-south completed well ahead of time.” arterial road, two state primary Many of these new outer suburbs are already schools and a secondary school, the focus of new housing developments, with two new sports reserves, a transit the March quarter Oliver Hume residential oriented town centre next to the communities report noting that 10 new future train station. communities comprising a total of 3,400 lots 4,850 new homes for 13,500 new launched over the first three months of the year. residents in Manor Lakes (in Four of the 10 projects were located Wyndham) along with two state in Wyndham, three in Melton, two in primary schools, two large new Whittlesea and one in Hume. recreation reserves, a local town centre and an important new The report says it would take 6.8 months to north-south arterial road. sell the current level of supply represents 6.8, exceeding the industry benchmark of six 7,000 new homes for 20,000 in months for the first time since the September Melbourne’s urban growth boundary will Merrifield West (in Hume) along quarter of 2006. extend outwards over the next 20 years to with the development of two state primary incorporate six new fringe suburbs and schools, football and provide new homes for up to 100,000 people. soccer grounds, two The plans, unveiled by Victorian Planning local town centres and a Minister Matthew Guy, includes the number of local parks development of six new metropolitan suburbs 6,650 new homes for at Diggers Rest, Lockerbie, Lockerbie North, 18,500 new resident in Manor Lakes, Merrifield West and Rockbank Rockbank (in Melton) North and follow the completion of the over a longer 25 year Logical Inclusions Review of Melbourne’s time frame) along Urban Growth Boundary (UGB). with the development The new suburbs will expand Melbourne’s of two state primary urban boundary to the North (Mitchell and schools, a secondary Whittlesea), to the West (Hume, Melton and school, three active All municipalities experienced a rise in Wyndham) and South East (Cardinia and recreation reserves, two local community supply with 20 months’ worth of supply in Casey) by 6,000 hectares. facilities, higher order civic uses, passive Mitchell (Wallan-Beveridge) and also double- recreation and linear trail network, a major The 6,000-hectare expansion is significantly digit level of supply in Melton. The City of and local town centre and an important east- Hume is now the tightest market, with only less than the 43,000-hectare expansion planned west arterial road. under by the previous Victorian government. 4.2 months of supply. Merrifield West residents travelling into the Plans for the new suburbs include the city will have to rely on the Donnybrook V/ building of new train station, town centres, Line rail station or drive seven kilometres to the open space and other key infrastructure Craigieburn rail station, while Rockbank North Over the next 20 years there will be 3,800 and Lockerbie residents will need to use already homes developed for 10,700 residents in busy V/Line rail stations until the new train Diggers Rest in Melton as well as local town station proposed for Beveridge is completed. centre located, the extension of Houdini There will be an expansion of the Diggers Drive, a multi-purpose community centre Rest V/Line rail station. and additional sportsgrounds. Guy says the urban expansion plan will 10,500 new homes for 29,500 new residents provide opportunities for Melbourne’s in Lockerbie (incorporating parts of Hume, economic and social future. Mitchell and Whittlesea) as well as a new train station, a new north-south arterial road, three “Housing, employment, infrastructure state primary schools and a secondary school, and all the other elements that make up 20 our community need to be planned and four new sports reserves and a new principal ST town centre next to the future train station. implemented carefully,” he says 21 CENTURY PROPERTY NEWS ARTICLES
Regional Rail Link brings the goods to Truganina, say analysts
Philip Hopkins - June 30, 2012
TRUGANINA, in the City of Wyndham in Mr Ghougassian said the new rail service was Melbourne's west, is emerging as a prime expected to drive population growth. ''Current industrial area due to new infrastructure and a and future companies in the area will be able growing population, according to a new analysis. to take advantage of the increasing workforce The new Regional Rail Link to the region will be population,'' he said. a key catalyst, the Jones Lang LaSalle analysis has Recent deals in Truganina included Coles with found, building on the west's long established 70,000 square metres, Pacific Brands with 43,000 advantages: proximity to the Port of Melbourne sq m and Toll Logistics, 17,300 sq m. and huge industrial land parcels. ''Firms are able to see the benefits of being The Regional Rail Link is a major rail line just outside Laverton, which is traditionally running from West Werribee through Deer Park considered the heart of the industrial west." and suburbs including Sunshine and Footscray to Mr Ghougassian said. About 55,000 sq m of Southern Cross Station. speculative stock entered Melbourne's western Separating Geelong, Bendigo and Ballarat trains market before Christmas, with about half of that from metropolitan trains will free up critically in Truganina. needed space for metropolitan services on the JLL's director of industrial, Rob Mirabello, Werribee, Sunbury and Craigieburn lines. New said low amounts of speculative stock affected tracks will be built from West Werribee Junction prospective tenants' ability to lease new facilities. to Deer Park and from Sunshine to Southern ''We're seeing it at the pointy end of negotiations. Cross Station. The line will use existing tracks It is not uncommon for two or more companies from Deer Park to Sunshine. to be vying for the same building, in fear of JLL's senior executive of industrial services, having to wait for the next to be completed,'' he Pierre Ghougassian, said the rail line, by linking said. Werribee via Truganina to Deer Park, would join the western industrial market to the north. ''It is clear that Truganina ticks all the boxes for the majority of Melbourne's large warehouse requirements,'' he said. ''It will also provide better access to Melbourne's industrial areas with two new stations located at Tarneit and Wyndham Vale.''
21 21ST CENTURY PROPERTY NEWS ARTICLES
Melbourne records strongest August 2014 quarterly growth: RP Data Jessie Richardson - 1 September 2014
Despite a 10.9% increase in dwelling values across the capitals on a yearly basis, only Melbourne and Sydney the only two capital cities to record double digit price growth. According to RP Data Research director Tim Lawless, Melbourne and Sydney's housing markets are responsible for the "two tier" market conditions. "Over the latest growth cycle we have seen Sydney dwelling values increase by 27% and Melbourne values up by 19.5%," noted Lawless. "Sydney and Melbourne were also the strongest performing cities during the 2009/10 growth cycle. Since the beginning of 2009, we have seen values rise by a cumulative 50.1% and 46.1% respectively in Sydney and Melbourne. "Looking at the remaining state capitals over the same time frame, the next best performer was Perth where values are now 15% higher, followed by Adelaide at 9.9%, Brisbane with Melbourne recorded the greatest quarterly The city's dwelling values are now 6.9% above 5.3% and Hobart where dwelling values are lift in dwelling values of any Australian their previous peak, and 19.5% up from the actually 1.5% lower." capital city, according to the August RP Data most recent market trough. Over the past 12 He predicts that home prices are likely to CoreLogic Hedonic Home Value Index. months, Melbourne's homes have increased continue to increase in the next quarter. Dwelling values in Melbourne were up 6.4% in value by 11.7%. “Considering the ongoing high rate of for the quarter to August, ahead of the 5.0% The median price of a house in Melbourne auction clearance rates, a generally rapid increase recorded in Sydney. However, on now sits at $570,000, while the median unit rate of sale and the ongoing low interest rate a monthly basis, Sydney had the greatest price is $460,000. House prices increased by environment, it’s likely that dwelling values dwelling value increase, with a 1.8% increase 6.6% in the three months to August, with a rise even further over the next three months," recorded last month. Melbourne saw an 0.8% 12.4% increase recorded by RP Data over the said Lawless. increase in dwelling values over August. past year. Rental yields are lower in Melbourne than in According to RP Data, Melbourne's median Unit price growth has been slightly more any other capital city, with houses offering dwelling price for August was $523,750. modest, with a 5.2% quarterly increase in unit 3.2% yields and units offering 4.2%. values and a 6.2% rise on an annual basis. Lawless notes that Sydney's gross rental yields have fallen to 3.6%. "In Melbourne, where rental yields are even lower, we have seen gross yields fall by 32 basis points over the year to reach 3.2% gross," he said.
22 21ST CENTURY PROPERTY NEWS ARTICLES
Plan Melbourne: Vic government's 2050 vision for the city Geraldine Chua - 15 October 2013
The Victorian State Government has released “We believe it represents a chance to start · The identification of dozens of new Plan Melbourne, a draft containing 7 getting transport infrastructure and planning urban renewal precincts like Cremorne, objectives, 41 directions and 115 initiatives right and to learn from the mistakes of the Collingwood, North Richmond to Victoria that will shape Melbourne from early 2014 past,” said RACV acting general manager of Park, and at Hampton, Jewell, Alphington to 2050. public policy, Thanuja Gunatillake. and Essendon Stations The 176-page plan has been hailed by “This strategy offers a chance to end the · A possible future airport in outer south-east, Premier Denis Napthine as “the most chronic under-investment in transport with potential locations between Koo Wee significant document for the future of projects and services and RAVC calls on both Rup and Lang Lang identified Melbourne and Victoria over the next sides of politics to agree to the key proposals 40-50 years”, and a vision that would help outlines in the report.” More controversial initiatives include: Melbourne remain as one of the most liveable Brief outline of the plan, courtesy of Tract · A "code assessment approach" to multi-unit cities in the world. Consultants: development, meaning that development which meets enhanced ResCode standards However, the focus is not just on Melbourne, The expected initiatives of the Plan include: but also Regional Victoria. in certain areas - such as the new Residential A heavy reliance on activity centres and “This is about producing a state of cities, not Growth Zone - are exempt from notice and renewal areas to accommodate more of just a city state,” said Napthine. third-party appeals Melbourne’s growth, with far less emphasis · The majority of new dwellings - 600,000 of a With Victoria’s population set to grow on established areas of detached housing exponentially by 2050, regional towns will total 1,046,000 - will be built in established become population and employment hubs, Significant residential growth in previously areas (an established/growth areas split of while urban renewal projects will drive jobs announced urban renewal precincts, 57/43%) including Fishermans Bend, Arden-Macaulay in Melbourne, the blueprint says. · Continued expansion of the freeway and E-Gate So far, the plan has received the backing network, including the East-West Link (with of several key industry groups, including A new Metropolitan Planning Authority with sweeteners like new boulevards and tram Victoria’s leading transport advocate RACV. powers to plan state-significant sites and upgrades added), and investigation of the However, the state opposition says the plan precincts, and oversee the delivery of the Plan North East Link (Greensborough to the will change Melbourne, bringing gridlock The establishment of 5 new metropolitan Eastern Freeway) and congestion. sub-regions - Central, Northern, Southern, “More high-rises, more people, more cars, but Eastern and Western - as the basis for no public transport and no infrastructure,” planning coordination and setting housing deputy opposition leader James Merlino said. growth targets Merlino added that the appeal rights The surprising initiatives of the Plan include: of neighbours objecting to high-rise development would be removed under the · A permanent metropolitan boundary more controversial parts of the plan. to replace the existing Urban Growth Boundary, with a ‘locking in’ mechanism to Certain initiatives that were expected be determined but missing from the Plan include accommodating for low scale unit · A serious push towards de-centralisation development in established suburbs. Instead, through the use of Regional Victoria as the housing focus is on high density and a ‘release valve’ when growth areas fill, detached housing, with less in between. especially in towns like Bacchus Marsh, Outer urban rail extensions, such as Mernda Ballan, Broadford, Kilmore and Wothaggi. and Epping North, are not included, while · A massively expanded Central City - to others like Rowvlle have been delayed. be Australia’s largest commercial and Municipal Association of Victoria president residential centre by 2040 - at the hub Bill McArthur said a permanent growth of an ‘Integrated Economic Triangle’ of boundary sent a strong message to the employment, ports and transport links market and encouraged a greater share of · The Metro 2 Project - rerouting the Epping future growth and development in regional and Hurstbridge lines though a new tunnel cities and towns. to Melbourne University and ultimately The RACV also called for bipartisan support Fishermans Bend for the plan. 23 21ST CENTURY PROPERTY NEWS ARTICLES
Plan Melbourne 19 May 2014
Dr Napthine said Plan Melbourne would be The Planning Authority will work closely the strategic framework behind the biggest with local councils as well as government infrastructure program in Victoria's history. departments, local residents and other "The Coalition Government committed a interested parties. record $27 billion in the 2014-15 State Budget Urban renewal of Fishermans Bend, E-Gate, for state shaping economic infrastructure Arden-Macaulay and along key rail corridors that will create jobs, boost productivity and a are a major part of the strategy. build a better Victoria," Dr Napthine said.
The plan reflects newly committed transport National employment clusters in Monash, projects such as the Melbourne Rail Link, Latrobe, Sunshine, Dandenong South, East including the Melbourne Airport Rail Link, Werribee and Parkville, with concentrations and the full East-West Link road project, of interconnected businesses and institutions, connecting the Western Ring Road at will make a major contribution to the Sunshine West to the Eastern Freeway. national economy and Melbourne’s position Mr Guy said Plan Melbourne defines a new as a global city. blueprint for our city by unlocking land Key activity and job centres will continue to within existing urban areas, and a strong be a focal point in areas such as Dandenong, transport foundation upon which to attract Box Hill, Ringwood, Essendon Fields, investment and locate jobs, businesses, and Narre Warren, Broadmeadows, Epping and services close to where people live. Footscray. "This is a comprehensive plan for Melbourne Melbourne is set to become a powerhouse In addition, Plan Melbourne prioritises 25 that caters for a projected population of 7.7 of jobs, investment and greater opportunity health and education precincts in locations million people by 2051 and provides a solid with the release of the Victorian Coalition close to homes and transport connections to foundation to meet these challenges," Mr Guy Government’s new city shaping strategy accommodate new highly skilled jobs and said. to 2050, Plan Melbourne, Premier Denis value adding industry. Napthine announced today. "For the first time there is a dedicated authority, the Metropolitan Planning Joined by Minister for Planning Matthew Authority, to implement Plan Melbourne and Guy, Dr Napthine said Plan Melbourne together with local government we now have integrated game-changing transport projects the roadmap needed to forge a productive with job-creating urban renewal and activity way forward for our great city.” precincts, close to homes and services that people need. Vital structural reforms to the Victorian planning system and a monitoring "I am delighted to release this final plan for framework have been put in place to ensure our city that will deliver more jobs, more Plan Melbourne can be delivered, while transport choices, more homes and more five new metropolitan subregions with lifestyle opportunities across Melbourne," Dr representation from all metropolitan councils Napthine said. have begun work to coordinate infrastructure "It is vital that Melbourne's liveability is priorities across state and local government. treasured and maintained. Plan Melbourne To implement the strategy, the Metropolitan outlines the leadership and direction for Planning Authority will be given planning Melbourne to remain a great place to live, authority powers for metropolitan and do business well into the future. Melbourne, and will use these powers in "The plan creates a clear picture of precincts and locations identified in Plan Melbourne's infrastructure-led growth Melbourne, including urban renewal to 2050 and a long term plan integrating precincts, national employment clusters, Victoria's regions with metropolitan activity centres, and health and education Melbourne," Dr Napthine said. precincts. 24 21ST CENTURY PROPERTY NEWS ARTICLES
Squeeze is on as Australia's populations boom Tim Colebatch - 27 November 2013
That already generates 60 per cent of Australia's population growth, but that would rise to two-thirds over the forecast period as the society ages. The bureau produces new projections every five years after the census. After the population boom since 2006, it now envisages much faster growth ahead than it foresaw five years ago, especially in Melbourne and Perth Sydney, however, is tipped to hold on to its crown as Australia's biggest city for longer than some have speculated. On these figures, Melbourne would only gradually draw level before overtaking Sydney in 40 years' time. Long before then, Perth would have overtaken Brisbane to become Australia's third-biggest city by 2028, with the ACT overtaking Tasmania in 2038. Almost 10 million migrants over the next The rest of Queensland would add 2 million, 50 years will swell Australia's population the ACT would double to almost 750,000, to more than 40 million by 2060 and more but in much of the rest of Australia - South than 50 million by 2100, under dramatically Australia, Tasmania, and regional NSW higher new projections by the Bureau of and Victoria - population growth will either Statistics. reverse or slow to minimal levels by 2050. The projections, the first for five years, The bureau puts forward three sets of envisage tens of millions more people projections based on different assumptions crowding into Australia's capital cities over about birth rates, death rates, migration levels the next 50 years, overwhelmingly due to and interstate movements, which provide a migration. range around its central projection. By 2060, the bureau estimates, Melbourne The high projections envisage an Australia of will have 8.5 million people, twice as many as 42 million people by 2050 and 70 million by now. Even by 2050, it would have 1.2 million 2100. Even the low projections would see the more people than the state government population grow from 23 million now to 34 assumed in its core planning strategy, Plan million in 2050 and 42 million by 2100. Melbourne, released last month. Its central projections, which are those used By then Sydney would have 8.4 million, in this article, would see Australia grow to an increase of 80 per cent from now. Perth 37.5 million in 2050, and 53 million by 2100. would more than double to 5.5 million Migration would become the driving source people, and Brisbane to 4.8 million. Both of Australia's growth. The bureau's central cities would be bigger than Sydney is now. projection assumes a long-run average net Melbourne would overtake Sydney in 2053. gain of 240,000 migrants a year, roughly Those four cities, the migrant magnets of current levels. Australia, would add 14 million of the 18.4 million extra people envisaged by 2060. 25 21ST CENTURY PROPERTY NEWS ARTICLES
Melbourne growth to stand out in 2016: HSBC's Paul Bloxham Jessie Richardson - 10 February 2015
While Bloxham notes that foreign investment "is only a relatively small proportion of overall housing turnover", it is "likely to be having some effect on housing prices". Victoria, which has seen the highest dwelling approvals of any state since 2009, is likely to see continued strength in the construction sector, according to Bloxham.
Melbourne will see the highest price growth He also noted the impact of foreign buyers on of any capital city next year, HSBC has demand for Australian property, explaining forecast. that Foreign Investment Review Board figures In the latest HSBC Australia Downunder "suggest a strong rise in foreign investment in Digest report, HSBC Australia chief Australian housing in 2014, with particular economist Paul Bloxham forecasts 4% to 8% strength in investment in new dwellings." (see price growth in Melbourne for 2016, after 7% chart below). "As Australia's growth rebalances away from to 8% growth in 2015. the mining states towards the south-eastern Bloxham expects that in 2015, Melbourne states – of New South Wales and Victoria – and Sydney will "continue to outpace the rest the strongest ramp-up in construction should of the nation", noting that from its mid-2012 be expected in these states," states the report. trough, Melbourne's housing prices have increased by 20%.
"Much of the interest from foreign buyers is in the Sydney and Melbourne new apartment markets," writes Bloxham.
However, Bloxham does not raise the 26 prospect of a housing bubble in Melbourne as he did for Sydney, where HSBC predicts ST prices could fall by 2% in 2016 when they 21 CENTURY expect interest rates to increase. PROPERTY NEWS ARTICLES
Developers odds-on to win at planning tribunal Jason Dowling - 21 March 2015
Councils have almost become redundant in the decision-making process for controversial residential developments, according to a RMIT University study.
The house always wins, or in the case of The research focused on new residential Going to Victoria's planning tribunal is not Victoria's planning tribunal – big housing development applications considered by cheap. developments nearly always win, new councillors to highlight decisions in the Another report by Dr Hurley showed a research indicates. context of urban consolidation policy. tribunal case can cost developers several Councils have almost become redundant in The report, Competing objectives, interests millions dollars and residents more than the decision-making process for controversial and politics in development assessment, said $100,000. residential developments in Melbourne's in contentious planning cases the tribunal Asher Judah from the Property Council said suburbs, according to a RMIT University has become an entrenched part of the the report indicated the planning tribunal analysis of permit applications. application process and the tribunal offered was doing its job and councils were not. When councillors refused a permit, almost developers "another spin of the wheel" at attractive odds. "[The tribunal's] job is to determine points of nine out of 10 permit applicants went to the law, in these cases, planning law," he said. Victorian Civil and Administrative Tribunal It said given the number of cases where and in 73 per cent of cases the council's council planning officer recommendations A spokesman for Planning Minister Richard decision was set aside and the permit granted. were overturned, "[the tribunal] is going Wynne said the government was preparing legal changes so that the Victorian Civil When councillors supported a development beyond providing oversight on the political influence of councillors". and Administrative Tribunal must, where and residents appealed to the tribunal, the appropriate, take into account the extent of tribunal upheld the council's approval in Dr Hurley said planning law was often community opposition to permit applications. 85 per cent of cases, the report by RMIT not black and white and included a level planning researchers Joe Hurley and Brendan of discretion that assisted both developers Municipal Association of Victoria president McRae showed. and councils to deliver planning outcomes Bill McArthur said councillors had "the complex task of considering an application in Once councils and the state government set tailored to individual sites and the character of an area. the context of the planning scheme and local strategic planning rules for an area, the power planning policy, not based on councillors' of a council to influence contentious individual The research indicated a "protectionist personal views, while also fairly representing planning applications diminishes considerably, impulse of local-level elected representatives community views". an extract of the draft report indicates. and the role of the tribunal in making Although councils and third-party objectors, decisions that significantly diminish this such as residents, may be able to slow or protectionist influence". modify a development – often at a cost of "The system at the moment is doing a pretty millions of dollars to the project – they are good job of papering over the fact that local rarely successful in stopping it. representative decision-making is really being The researchers looked at 759 development circumvented," Dr Hurley said. 27 applications across the 31 metropolitan "For contentious issues, they are effectively Melbourne councils in 2011 using minutes withdrawing that delegation from the local ST from council meetings, with the full report level of government," he said. 21 CENTURY expected to be published later this year. PROPERTY NEWS ARTICLES
Booming land sales in Melbourne inspires developer to come up with innovative profit making strategy for homebuyers and investors March 24, 2015
auction clearance rate has grown by ten per cent to 70.9 per cent in mid-February. Robert Larocca, CoreLogic RP Data’s auction specialist, has said that the ascending trend in auction clearances suggests how buyers greeted the rate cut set by the Reserve Bank. Mr Larocca added that the current trend will encourage more vendors to enlist their properties on the market to comply with the strong demand. The auction specialist recently said to the Australian Financial Review, “in terms of volume and clearance rate the auction market is breaking records right now,” . On the weekend of March 20-22, in Melbourne’s outer west, private developer Victoria Investments & Properties and Mirvac sold 69 lots at Woodlea housing estate following a ballot at Galli Winery. Although there were only 70 Due to booming land sales in Melbourne, one “Innovative concepts such as these were aimed lots available in stage one of the 711-hectare developer has come up with an innovative way at trying to help solve the housing affordability master-planned community near Caroline to allow home buyers and investors to lay by problem, however, they are being swooped on Springs, there were 185 registered buyers. land for 3-5 years before they have to pay for it by savvy investors who want to scoop up the Matthew Dean, Woodlea’s project director said and share in the profits. potential profits”. it was unprecedented to have such a high level The demand is currently so high that some According to Mr Pachnanda, they might have of interest in a new housing estate’s first stage. housing developers are now offering investor to limit the number of lots per investor to Mr Dean opined that the appeal of the project and homebuyers the chance to secure their make it fair so that future homebuyers don’t itself and market conditions were key reasons housing lots in Tarneit, Melbourne 3-5 years miss out. However, he said, savvy investors for that, the newspaper noted. Woodlea offers in advance. recognise that such deals are good whereas first 500-square-metre lots priced at $183,000 AUD, less than the $200,000 AUD average for Melbourne Grove is one such new homebuyers are less financially savvy and often miss out. Melbourne land. It is also a 30-minute direct development that is allowing buyers to secure ride to the city and there are plans for parks, their lot now at discounted prices through an Even though Mr Pachnanda said they don’t schools and a town centre. option. Yet they have 3-5 years before they officially launch their planned development have to pay for their land. until March 26, “we have already tallied up Property adviser Richard Wakelin said the latest rate cut had reset the Melbourne market Any capital growth over the next 3-5 years quite a few pre sales. With less than 40 being released in stage1-3, it will sell out quickly after it absorbed an oversupply of properties in goes to the buyer and best of all they have no late 2014. “People are bold in their bids” and interest or holding costs for 3-5 years. because such is the demand in Melbourne’s property market“. are trying to force offers on vendors ahead of “The idea was to assist homebuyers in having auction, Mr Wakelin opined. a chance to lock in land for their future home On the weekend of March 20-22, the first stage ahead of time, or for parents to do so for their of a massive new housing estate in Melbourne’s children”, said a Melbourne Grove Estate suburbs completely sold out, as its developers spokesperson Varun Pachnanda. “However, embraced a ballot system to accommodate savvy investors have been queuing up to buy growing demand. the land using options and many are also using The appetite for existing homes is also strong, their SMSF where applicable”, he explained. especially in Sydney where the clearance “They’ve figured out if you can buy land worth rate tapped 85 per cent. Melbourne is once $200,000 today for $170,0000 and not have to again a seller’s market, with clearances going pay for 3-5 years when it will be worth possibly up to above 78 per cent, figures provided by 28 CoreLogic RP Data showed. The property data $250-$270,000, then it’s a nice earner. Plus they ST can either flip the option to a homebuyer or and analytics provider previously revealed build on it and rent out to make even further Sydney’s auction clearance rate had a historic 21 CENTURY profits before buying the land in 3-5 years. spike to 83.3 per cent, while Melbourne’s PROPERTY NEWS ARTICLES
Buy land not houses, says property millionaire and educator, Jamie McIntyre January 29, 2015
strategy, but for slower ten year strategy that is hard to beat with managed funds or stock market strategies. “You can then purchase the land easily as you have 50% in equity that you purchased with an option for $150,000 now worth $300,000. Then you can sell the land to a home buyer via local agents or preferably build a house on it and then sell it or rent it. “A great idea to action now, for children to lock in property at today’s prices. Or you can resell the option for a handsome profit and never need to buy the land as it has intrinsic value. “The best thing about property options means you aren’t obligated to buy i.e. as they are simply call options, you have no risk and can walk away at any time. “Plus if the option is by a legitimate supplier, they will offer a 100% money back guarantee if the worst should “Buying land, not houses I believe is now would be smart for property investors to start happen and the development doesn’t proceed, the most suitable investment strategy”, buying property options ahead of increasing secured by the land development itself. says millionaire property investor and their debt levels in the current market. “These quality 100% money back property motivational speaker Jamie McIntyre who “There are only a few select suburbs I would options secured by real estate are becoming heads the 21st Century Media and Education consider buying Australian property in now, highly sought after products for savvy Group of Companies. as most suburbs will not grow as well as many investors. I believe these will become a The Australian Financial Review reported hope, whereas land prices tend to rise faster common investment strategy in the future last year that Mr McIntyre and the Reserve than houses. because of their profitability and security and Bank Governor Glen Stevens have one thing “That’s why I don’t like inner city apartments this is why I’m moving into this space in a big in common, which is, they both believe inner as investments because there is virtually no way”, said McIntyre. city apartment markets are overheated and land component. Whereas buying land on the are wary of it as an investment, particularly in outskirts of capital cities or even better in fast Melbourne and Sydney. growing regional cities that will become prime McIntyre, a property investor for almost two for residential development in the future, is a decades has been bullish on both Australian far more profitable strategy”. and US Real Estate. In the past, he said “I McIntyre goes on to state: “Especially if you would agree that simply buying houses and can use ‘property options’ to avoid borrowing, never selling was an ideal strategy. “Even it means you get all the upside of capital though that’s still a good strategy, smarter growth without any interest repayments or investors would be better off acquiring land holding costs or the need to beg a bank to loan in areas that will be developed in the future you money”. because if done correctly, not only are the profits are much greater, but it also contains He explains that if you were able to secure an less risk”. option over a future lot of land worth $150,000 today and let’s say it is a ten year option, in McIntyre says he likes the ability to use options ten years time you could expect the land to be to buy land as opposed to borrowing money worth $300,000 or more in a fast growing area. and paying interest on the land for a decade or Alternately savvy investors can turn $120,000 more waiting for it to rise. He said, “Options into $1.2million by becoming a mini land are commonly used in the stock market but developer by using a $120,000 option to secure the average investor doesn’t know that you can for instance a one acre lot of land and sub simply and easily buy property options to be dividing later into 4 lots worth $300,000 each 29 able to profit from property without the risk of (approximately) in ten years time totalling to ST debt, interest repayments or any holding costs”. $1.2 million. Certainly not a get rich quick According to McIntyre, because the Australian 21 CENTURY Property market is starting to overheat, it PROPERTY NEWS ARTICLES
Why you need to be a sophisticated investor to make it in land banking? March 7, 2015
You need to be a sophisticated investor to make It would more likely be $500,000 or $1 million Bureaucratic government departments can say the big profits in land banking. Being a mum and the opportunity would vanish for you to such things that sound good but mean little and dad style retail investor won’t cut it. make such profits. and to be a sophisticated investor we need to Here’s how to see if you are a retail investor, The council staff can only state what the learn to look past it. meaning you have to pay retail for investments current guidelines are, period. The statement above is assuming that all the for the rest of your life or a sophisticated Let’s use the example of Wallan and our land owners inside the UGB will suddenly investor and qualify to access wholesale land Secret Valley Estate Project 45 minutes from develop the desire (and skill set) to become deals where savvy investors turn $135,000 into Melbourne CBD. land developers. How is the council going to $1.2million in a decade. enforce that they stop their current activities It’s outside the current UGB and will remain on their land and develop? Plus, this is why councils can’t tell you if outside even when the boundary is extended in (and when) a wholesale land project would a few years. They can’t and most won’t. To see for yourself, be approved and why ringing them is a waste drive from Melbourne to Wallan and you will of time? Council will say we have no plans at this see thousands of acres of UGB land with not a stage to apply for rezoning that area as we single house on it. Firstly a wholesale land project (that offers you have 50,000 potential house lots that can be the chance to turn $135,000 into $1.2 million developed inside the new UGB Why? in 10 years or so) only exists when the land is Because making something UGB doesn’t mean currently outside the current Urban Growth Thus, as far council is concerned, there is nothing to talk about. houses will be built as developers will build Boundary or not currently zoned Residential. where they want to build. If it is already zoned Residential or inside The thing about bureaucracy; their position (in the long run) is somewhat irrelevant as based A wholesale land deal only works long term the UGB and thus is automatically going to in areas outside UGB that’s why it’s called be rezoned residential by council then land on these supposed guidelines half the housing estates around Melbourne and Wallan wouldn’t wholesale. Retail land is land that’s already prices already adjust to reflect this and thus a approved and that’s why you pay retail prices. lucrative opportunity doesn’t exist. exist today. Yet they do. In recent years, the Mitchell Shire Council, But then again in our land projects what risk You could go and buy land at retail if you want do option holders take? The option is secured this sort of guarantee and build a home on it, which includes Wallan have approved numerous developments that were and are against real estate and if the development isn’t however, that’s not Land Banking nor will you approved in a certain time frame it becomes make large potential profits. going to remain outside the UGB. You can Google and find many of these selling retail 100% refundable. Land Banking is when developers use foresight land as we speak. There an upside to turn $135,000 into $1.2m, to buy land with a view to rezone in the future; and downside you get your money back. and they lobby the council over years to get the According to their same guidelines, these should rezoning or often won’t even apply for 10 years never been approved, however they do so today. You can even apply to transfer to an alternate to get rezoning. In fact they approved the “Hidden Valley ” project that may get approval sooner. This creates opportunity for larger increases estate over 30 years ago. So to be a sophisticated investor and take and profits in land value. However these The UGB was a long way from Wallan back advantage of land banking you can’t expect developers generally are large ASX listed then, and Hidden Valley will remain outside retail security. Retail security is for mum and companies that won’t share these enormous the UGB for years to come. Yet it exists and is dad investors and not sophisticated investors. profits with you unless you buy their stock growing still to this day. Therefore, relevancy of That mindset doesn’t get you a pass to be a in the ASX and then you’ll get maybe 4-5% the Urban Growth Boundary (UGB) is limited. partner in our projects. dividend return, but never the massive windfall UGB simply means the council at some point We have retail land, which we can offer those that developers make. in the future will rezone it where if it’s not UGB with that mindset in UGB that council is If people who want to qualify to buy an option it will require developers to submit rezoning rezoning residential without us needing to in one of our highly sought after land projects request to try an achieve a rezoning. apply for rezoning. ring the council wanting some sort of guarantee See the article “developers Jump the UGB in Wholesale and the big profits are not for those that it will be developed, it just won’t happen. the due diligence kit ” to understand why these types of investors. Why? areas the council will automatically rezone at some point which drives the price of land up to So you need to decide if you’re a sophisticated 1. Firstly it’s not their job to answer often unsustainable levels. investor and if so then such an investment can development questions about a project at a be suitable. If not a retail type offering with less wholesale stage, which hasn’t been submitted Outside UGB they won’t approve a rezone risk is more suitable. to council and may be years away from being unless a developer successfully lobbies over submitted. It is rather annoying for them. time and gets approval. 2. If they categorically said yes that it will be An irrelevant statement is that Wallan will have rezoned and approved (which they can’t) then room for 50,000 new houses inside the UGB to that would be the worst news you could ever hear. cover demand for 20 years. Why? 30 Because the land would be worth ten times the current value already and we would never ST be able to let you acquire an acre of land that 21 CENTURY could be acquired for say $135,000 option. PROPERTY NEWS ARTICLES
Family to become multi-millionaires as the farmland they bought for $300,000 in 1982 is now worth $70MILLION Sally Lee - 4 October 2014
• The 108ha farmland in Sunbury, northwest of new suburb - South Sunbury. Melbourne, was bought in 1982 for $300,000 The investors put the property on the market • It was bought by ten investors, among them when they realised nearby farmland was being five brothers turned into residential areas. • The area was considered ‘the middle of The sale will be divided up among them, based nowhere’ but is now a prime housing on the size of the blocks each investor owns. development site said to be worth $70 million They include tradesmen, aged in their sixties • The site is made up of ten blocks, ranging in and seventies, who say the property sale will size from 6.25ha to 19.59ha help them enjoy their well-earned retirement. One of the co-owners said he will give some of • The property, which will hit the market next ‘For me and my wife... we didn’t have much the money to his grandchildren, but he and his week, has also gained interest from overseas holidays, because working hard, now we try to wife will also visit their homeland in Croatia buyers enjoy a little bit more than we did before,’ one A patch of land which was once worth co-owner told Nine News. $300,000 is set to turn a group of Melbourne The Croatian immigrants hope to share their family and friends into multi-millionaires. earnings with their family and also take trips to The 108ha farmland in Sunbury, northwest their home land. of Melbourne, was bought in 1982 and was ‘I got a grandchildren, a little bit for them and a considered ‘the middle of nowhere’ which little bit for me too,’ said another co-owner. has now transformed into a prime housing If the hobby farm is sold for $70 million, development site - worth $70 million. current owners will earn about $65 per square Ten investors, among them five brothers, told metre. Nine News they had to borrow funds to place a Real estate agent Joseph Ngo said the property, Real estate agent Joseph Ngo said the property, deposit on the property as they were destitute which is set to officially hit the market next which is set to officially hit the market next week, at the time. week, has already generated interest from has already generated interest from buyers in The ten blocks of land, ranging in size from buyers in China and Sweden. China and Sweden 6.25ha to 19.59ha, is expected to be rezoned ‘They do have in the pipeline a train station, of and developed into 2000 properties to create a course a school, a park,’ he said.
The 108ha farmland in Sunbury, northwest of Melbourne, was bought in 1982 for $300,000 and is said to be worth $70 million 31 21ST CENTURY PROPERTY NEWS ARTICLES
Demand for house and land packages booming, as buyers chase Australian dream
Emily Power - March 26 2015
Families cheered and cried as Nixon plucked This weekend, in Kalkallo – 33 kilometres their names from a barrel, after which they north of the CBD – Stockland will launch the chose their plot – priced at an average of $4.6 billion Cloverton development, Victoria's $186,000 for 500 square metres – and signed largest ever residential project. contracts. Cloverton covers more than 1100 hectares The first names pulled were couple Anjeza along the Hume Highway, with 11,000 Hoxhalli and Alex Talezski. dwellings and a town centre equivalent to 30 After renting at nearby Caroline Springs, the MCGs. first-home buyers wanted somewhere to start House and land is priced from $270,000, or a First home buyers Anjeza Hoxhalli and Alex Talezski sign contracts for their new block of a family and were keen to skip the "too-hard- vacant block from $129,000, and it's expected land at the Woodlea development in Rockbank. basket" auction system, said Mr Talezski. about 30,000 Victorians will move to Cloverton Photo: Peter Casamento Some families had waited years to secure over the next 30 years. Ballots, camp-outs and $1000 registration fees land, said Woodlea project manager Matt Stockland's Victorian residential regional – like Willy Wonka's golden tickets – are part Dean. manager Jason Shaw said sales across its of buying a house on the city fringes amid a "There was a lot of anticipation and a lot Victorian estates are nudging 2010's high new estates boom. of nervous people," he said. "When the point. Melbourne's auction market is flush with an first name was drawn out, the whole crowd "Our trading across all of our existing eight autumn record of almost 1400 homes going cheered. projects has really been very solid ... and under the hammer this weekend. But an "We had people crying because they were so probably this year that has stepped up to unprecedented surge in demand for house relieved to secure their land." another level," Mr Shaw said. and land packages is also seeing thousands of At Wantirna Rise, $53 million worth of land "We are returning to those levels of demand. families achieving the great Australian dream was also sold last Saturday at a rate of four Certainly with Cloverton and the launch this in a process that is just as competitive and as blocks, worth on average $477,000, every 15 weekend we are confident we'll have a sell-out hyped as the auction market. minutes – equating to more than $7.5 million result based on the level of interest." Melbourne's housing affordability squeeze, every hour. growing population and low interest rates Buyers had to register for what the developer are fuelling the uptick in Victorians buying dubbed a "Golden Ticket". into so-called masterplanned communities, developers say. Real estate agent Peter Nicolls started inking contracts on site at 7am, in the dark, and sold A UK housing report recently identified the out of the 113 available plots. growing number of "rururbs" – rural suburbs – with the trend in Britain mirrored on the "It was a frenzy," he said. "It all comes down to outskirts of Melbourne, from Maddingly in the how well it is priced. west, Mernda in the north and Officer in the "We have been very successful selling projects south-east. in Berwick and also in Keysborough, and other About 30 kilometres west of Melbourne at areas like Pakenham and Cranbourne, and it Plumpton on the Melton Highway, around has definitely now reached new heights." 350 people keen to buy into the new Woodlea Developers say 2010 was a peak for the housing development packed into a winery last estate market, stimulated by the government's Saturday for a lotto-style ballot. first home buyers grant. A random draw, with much fanfare, was Following that spike, developers were dangling necessary after 3000 inquiries for just 70 blocks carrots of free cars worth $40,000 and furniture of land. along with house and land bundles. About 185 families paid a registration of $1000 Now, demand is again so high that they don't for the right to attend the event, which was need such enticements, with some eager buyers hosted by Channel Nine weather presenter even camping out for days at new housing Livinia Nixon. estates around the country for first dibs at the best blocks. 32 21ST CENTURY PROPERTY LAND SUPPLY PIPELINE
7 TO 10 YEARS Making land available for housing can take as much as 7 to 10 years, sometimes even longer. Finding ways to speed this process up along all facets of the supply pipeline will help respond to changes in demand and pass savings on to housing consumers.
LAND ACQUISITION BY DEVELOPERS
REZONING PROCESS (2 - 5 YEARS)
MASTER PERMIT PROCESS (1 - 2 YEARS)
SUBDIVISION PERMIT STAGE 1 (3 - 6 MONTHS)
NOTIFICATION TO CLIENTS (120 DAYS TO EXERCISE OPTION)
SIGN CONTRACT / PAY 10% DEPOSIT / SETTLE (1 – 2 YEARS)
LOT CONSTRUCTION STAGE 1 (1 - 2 YEARS)
HOUSING CONSTRUCTION (6MONTHS +) 33 21ST CENTURY PROPERTY 21ST CENTURY PROPERTY
LEVEL 8 100 ALBERT ROAD, SOUTH MELBOURNE VIC 3205 PHONE 1800 999 270 FAX 03 8456 5973 www.landbanking.com.au
Disclaimer: (important to read as contains details in regards to understanding the intention of this brochure as a ‘concept brochure only’)this brochure is concept only and has only been created for the purpose of providing information to both current and prospective clients who wish to reserve lots in the planned development. Accordingly, one should not rely on the accuracy, completeness or suitability of the information contained herein. This brochure is presented only as a proposed guide for illustrative and educational purposes. It should not be represented or regarded as legal advice, real estate advice, investment advice, tax advice and any other similar professional advices. All matters of contract and details for contracting are solely dealt with in the lot reservation agreement and in no way whatsoever does this brochure form part of an offer or contract between the parties. Before making any decisions to invest in property, any and all potential purchasers must: conduct their own research, and, take any measures the purchasers reasonably believe are necessary to verify the standard and suitability of the property for the purpose for which it is being reserved, such as: obtaining independent financial, legal and professional advice, from those suitably qualified in the relevant industry, in regards to your circumstances, objectives and risk appetite, notwithstanding we have taken all reasonable care to provide the information but considering that the proposed development is in an area currently not zoned residential and many changes may have to take place to the proposed plans to meet approvals by local or state authorities the information provided can only be considered general in nature and under no circumstances is it to be considered a definitive statement of the nature of the development. The vendor (and all officers, directors, employees, agents and affiliates thereof) shall make no warranties and accept no responsibility or liability whatsoever for any loss, damage or claim of whatever nature suffered or incurred by any person who relies, or seeks to rely either wholly or in part on any information, projection, advice or opinion provided in this brochure. All site plans, photographs, description, statements, graphs and renderings (images) are lifestyle location shots, internal/external housing images and/or artist’s impressions of the final product. These images are for conceptual purposes only and for the avoidance of doubt do not constitute an indication of the final look of the development, an estimate of the expected returns on the property investment and a warranty for the provision of the included facilities. All information, pricing, availability, design and facilities as quoted in the brochure are subject to change without notice for any reasons (however arising) including but not limited to amendments to the final plan subject to panning restrictions. Without prejudice to the rights outlined above, the vendor (and all officers, directors, employees, agents and affiliates thereof) may hold shares and/or obtain fees and/or other benefits from the companies presented and promoted in this brochure and/or in the described materials, with no consequences. All texts, trade names, trademarks, copyrighted material, logos and related materials remain the copyright and property of their respective owners.