Field of dreams from under-used land | Star Dandenong | Star News Group Local News, Sport, Entertainment:
KEYSBOROUGH is home to a new $1 billion housing development, one of the largest infill projects undertaken in the south-east.
Planning Minister Matthew Guy officially opened the new development named Somerfield and said the transformation of 120 hectares of under-utilised land into a new neighbourhood will pave the way for up to 2000 homes and more than 7000 residents.
Comment: I hope we can do similar in Coldstream soon. It would reduce the rate burden and create jobs and keep families together and and and and...
1 comment:
Somerfield in Keysborough is between Greens and Perry Road but not sure what the zoning was before the development process started by the SMORGON family-backed private developer Intrapac and logistics and property tycoon Peter Scanlon's Brencorp Properties have notched up $500 million in sales across their joint residential development in Melbourne's southeastern suburbs.
If the project is really worth $1 billion then the State Government would earn about $60 Million in sales stamp duties and would already have created work for many trades. I'm not sure why its named an infill development project but more than 800 house and land packages have already been completed.
How much would the state govt have received in rezoning infrustructure contribution taxes or have they rejigged that tax? It was to be something like $100,000 per acre if I recall correctly?
Not sure what the development costs are these days for roads, 20% open space, water, sewer, electricity services etc it would be interesting to see how much a landowner would really profit from a rezoning and subdivision. Has anyone really done their sums?
The developer really makes his profit by gearing and using the bank depositors money and so if the profit marging is 30% but borrows 50% they would really make 60% return or more on their capital outlay, but 30% would not entice me into the headaches of dealing with all the commissars along the way.
The question is how much more would rezoned GWZ land be really worth to a potential developer for a once only profit.
The Shire is trying to keep the values down for the benefit of the big corporate farmers & it seems both unfair and unconstitutional to meddle in market forces, but maybe one of the ways of increasing the value of farmland and create a natural demand for housing is to promote the benefits of the profitability of growing cash eco crops for the eastern suburb householders and hold farmers markets in Coldstream central every week. Bring the people to Coldstewam, congest the area with people let them see the area and more will want to buy a piece of it and the Shire might be more inclined to agree to more subdivisions. Who do I send my bills to?
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