Recent sales success at Arramont Wollert, Atticus Woodstock, and other established land projects across metropolitan Melbourne and regional Victoria signals the resurgence of a thriving superlot market. Developers are increasingly turning to superlot sales which are strategically situated within these rapidly growing communities.
“These smaller-scale development sites have become focal points for land developers seeking to unlock capital and for buyers seeking to unlock capital and for buyers seeking to tap into emerging opportunities within established communities,” notes Tim Hyland, National Strategy Manager of Transactions & Advisory. This shift responds to the challenges faced by lot sales struggling for momentum in Q4 – grappling with the economic factors that have influenced buyer behaviour.
The recent surge in superlot sales is driven by two key factors. Firstly, developers are recogising the advantages of capitalising early in their projects. Selling a superlot enables the injection of substantial revenue; a strategic move crucial to navigating the complex financial landscape of large-scale property developments. “Superlot sales are significant in the current market, prompting developers to explore new avenues for financial traction,” explains Mr Hyland.
Secondly, a more diverse range of buyers is entering the superlot market, aiming to cater to the needs of a growing population and position themselves for future growth. Commercial, retail, and medical operators are strategically establishing themselves, often ahead of major town centre developments. High-demand childcare providers are also seizing opportunities to meet critical service demands in rapidly growing areas. Referring to our Transactions & Advisory division’s recent sale of the Arramont superlot in Wollert, Mr Hyland notes its suitability for a new childcare development, addressing the critical demand for early learning services in the established Wollert community, where the majority of new land purchasers already have children.
Builders area also actively seeking bulk lot purchases of small-scale development sites with delayed settlement terms, positioning themselves for the upcoming housing boom. “Established estates and communities offer appealing prospects for builders, with the potential for price escalation over time – this can be a lucrative prospect for forward-thinking builders,” says Mr Hyland.
As superlot sales continue their resurgence, developers closely monitoring these market shifts are the best positioned to leverage superlot opportunities that will benefit both them and the wider communities.
For more information on upcoming superlot sales, contact Tim Hyland or Zaynoun Melhem.
This article references findings from our Q4 2023 Greenfield Market Report.