Stockland, the country's largest residential developer, has confirmed the acquisition of an 89.5 hectare land parcel in the Donnybrook precinct in Melbourne's north.
Stockland have paid approx $105m for the site ($1.17m per ha), just short of the price per hectare Stockland sold 167ha of land at Tarneit to Frasers 12 months ago.
The land is in the approved Donnybrook Woodstock Precinct structure plan, one kilometre east of the train station and 30 kilometres from the Melbourne CBD. Stockland plans to develop about 1500 new homes, as well as open spaces, a large recreation area and a future school on the new land parcel.
Stockland chief executive of communities, Andrew Whitson, said that "The acquisition aligns with our strategy to restock our residential pipeline with new projects projected to achieve returns above our hurdle rates."
The move back into the Melbourne land market comes on the back of expectations at Stockland that the housing market will surge again in coming years, as demand picks up and supply remains constrained.