6 January 2011

Land demand shooting up! Chiefly Celebration

6 January 2011 | johnboy

Chief Minister Stanhope is thrilled that new land for apartments in the planned suburb of Wright in Molonglo has shot over reserve at auction:

Two multi-unit sites were sold by tender to local developers for prices above the reserve.

A 7,456 sqm site on the corner of Cotter Road and the future John Gorton Drive sold for $4.38 million to Intelligent Group Pty Ltd. The high density multi-unit site will see the construction of up to 75 dwellings.

Another 8,484 sqm site, adjacent to Uriarra Road, was purchased by 30 Forde Pty Ltd, a company owned by local businessman Nick Georgalis. The $4.64 million site will accommodate 25 terrace dwellings.

The landmark locations are opposite parklands that will be a major feature of the new suburb.

“The sale of these sites for prices above their reserves confirms the demand we saw last year when more than 300 residential blocks and two multi-unit sites were sold in the first release of land in Wright,” Mr Stanhope said.

One is sure the apprentices sleeping in their utes, and the students crashing on friend’s floors, because they can’t afford a place to live will join the Chief Minister in his celebration of skyrocketing real estate.

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Ian10:29 pm 06 Jan 11

I wonder if Stanhope sees any conflict between simultaneously spruiking high land prices and claiming to be seriously addressing housing affordability.

georgesgenitals10:20 pm 06 Jan 11

Starts to make buying a knock down for 500k on a block more than twice the size seem viable…

Usermane8:03 pm 06 Jan 11

DeadlySchnauzer wrote…
“There are still residential blocks available in Wright: http://wright.molonglovalley.com.au/block-lot/. There have now been multiple sales events since launch that have failed to clear out all the blocks.”

I went to the link and the first unsold block I clicked on was 330sqm. Postage stamp size. A typical front yard in an established suburb is not much smaller. It is just a more expensive Gungahlin (and about as far from the city as the crow flies, albeit on better roads). I wonder if that has anything to do with the slow sales…

LSWCHP2:43 pm 06 Jan 11

How dim can this bloke be? Was there any need for demand to be confirmed?

The price of accommodation in the Territory is a disgrace. This is particularly so given the tiny blocks, narrow roads and lack of amenities in the areas under new development.

Meanwhile, the smartest guys in town get together, nod, smile and wink at each other, and the money goes around and around.

breda11:54 am 06 Jan 11

gospeedygo – I think one called Barrett would be more appropriate. It could be solely powered by windmills, have no garbage collection service and ban all motorised transport. Lots of people in this town, according to their rhetoric, would love to live there.

gospeedygo11:29 am 06 Jan 11

Cmon people, we just need two more suburbs called Waters and Mason life will complete.

EvanJames11:22 am 06 Jan 11

And it’s all based on supply. The so-called value is just artifical. Look at those houses selling for $10k in the US, it puts it in persepective. Or even in country towns that aren’t commuting distance from a major employment centre.

Housing affordability in this area is a complete joke. The developers and the local government collude and ordinary people get to live their entire lives in a mortgage mouse-wheel.

I do wish they would stop selling land to developers and go back to the old system. Look at the disgrace that is Gungalin, it is all caused by greedy developers.

watto2310:52 am 06 Jan 11

I was shocked that people were desperate enough to pay around $400k for land in wright.
I was thinking of buying but $400k just for the land is ridiculous.

The government needs to release more land so the demand is lower. Of course then other taxes are likely to go up, so we prob can’t win either way.

DeadlySchnauzer10:22 am 06 Jan 11

I love the old real estate spruik of “Demand is high because the reserve was exceeded!” (of course it has nothing to do with them setting a conservative reserve price because housing is in the doldrums at the moment.)

There are still residential blocks available in Wright: http://wright.molonglovalley.com.au/block-lot/

There have now been multiple sales events since launch that have failed to clear out all the blocks.

I don’t call that “Strong Demand”

Diggety10:06 am 06 Jan 11

Stanhope: Demand? Of course there is demand!

Now have a go at the important issue- affordability.

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