Of Frasers Property Australia’s Victorian masterplanned communities, The Grove in Tarneit has experienced the biggest uplift in enquiry in June as a mix of first home buyers are being joined by investors, upgraders and even returning expats to deliver a huge 43% increase in enquiry in the past two weeks.
The current spike in demand saw some 76 deposits taken in the month of May and June, meaning more than one buyer per day is looking forward to calling the masterplanned community home.
Sarah Bloom, General Manager Development Victoria, says The Grove’s choice of homes and price points are appealing to a broad cross-section of buyers.
“Communities with a lifestyle focus have been the subject of increasing demand and The Grove offers the desirable balance of larger land lots, plenty of outdoor amenity including bike and walking trails, and natural beauty in the form of wetlands and parklands,” says Ms Bloom.
“Feedback from buyers is that, in the current climate, The Grove provides value, choice, lifestyle and future growth potential. As such, we’re seeing a significant increase in people investigating the choices on offer.
“Enquiry has been broad. Different people at different stages of their lives and from different backgrounds will ensure the diverse community we envisaged comes to fruition.
“Looking ahead, with a near complete neighbourhood activity centre, a new town centre, primary and secondary schools, as well as sporting grounds planned, all within walking distance, the lifestyle appeal of The Grove will gain another dimension,” she says.
In recent times, Frasers Property has brought forward new releases at The Grove to keep up with demand. Currently on offer are a variety of lots bounded by extensive waterways and open space, with prices ranging from $269,500 to $410,000.
The Grove is located 31km from Melbourne CBD in Victoria’s popular western growth corridor. Bounded by Davis Creek, Werribee River, future waterways and wetlands, the community offers interconnected cycling and walking paths which will link the waterways to outdoor parks and play spaces, a future town centre, schools, childcare and community facilities. Recently, an important link across Davis Creek and into the wider Tarneit community was opened.
Frasers acquired the project from Stockland in December 2018 for $202m ($121/sqm). That price was a 59% premium to Stockland’s book value. Stockland had acquired the land under option contracts in 2010 from a range of local farm owners for a total price of circa $75M and achieved development consent in 2014. At the time of the sale, Stockland had sold almost 1300 lots in the estate have been sold, with more than two thirds of these settled. Whilst Stockland banked a nice premium on the sale, I expect that they wished they could have held on to the site. Stockland since re-entered the same market, acquiring a 38ha parcel of land for $50m in March this year. ($132/sqm).
Frasers are competing heavily with Villawood who are developing a new estate alongside The Grove which Villawood acquired in August last year for $180m. Meanwhile, Central Equity, Skyland, and Growland are all pursuing projects in the Tarneit Growth Corridor.