This article is from the Australian Property Journal archive
CHINESE development giant Risland – formerly Country Garden – has handed over the next $50 million as part of Victoria’s largest single land sale, and is expecting first home buyers to boost sales on the back of the federal government’s first home loan deposit scheme.
Risland bought the 363-hectare property in south western Melbourne for $400 million in 2017 from ASX property minnow Phileo Australia. About 14,000 residents across 4,900 lots will call the Windermere development home.
Nearly 500 lots have been sold since the launch in mid-2018.
Risland chief executive officer, Dr Guotao Hu expects to sell about 400 lots at Windermere this year, boosted by a growing first home buyer market.
“First home buyers are currently 45% of our market but we expect that to reach 65% by the middle of the year.
“That is based on the fact that the Federal Government’s First Home Loan Deposit Scheme is making it easier for first home buyers because they only need a 5% deposit. Added to the state government incentives and low interest rates, we have the perfect conditions,”
He said the enquiry enquiries from January 15 to February 20 showed a 28.3% increase in enquiries for first home buyers. A further 10,000 scheme places will become available in July, and Dr Guotao Hu expects that to flow onto sales later in the year.”
Windermere will launch lot sizes of 165 sqm aimed at the first home buyer market next month.
All lots are expected to be sold by 2025, which would value the project at $1.9 billion.
The deal was divided into four payments, being a 10% deposit in July of 2017, of $110 million in February of 2018, the latest payment, and a third and final payment of $200 million that is due on 15 February in 2022.
Windermere is Risland’s first foray into the Melbourne property market and its second in Australia, following the Wilton Greens development, partnering with Walker Corporation, in Sydney’s south-west. Wilton Green encompasses 432 hectares, including 163 hectares of land set aside for environmental conservation.
Risland has also developed Ryde Garden, a $580 million three-tower residential development in Ryde with 830 one, two and three-bedroom apartments with a 4,000 sqm park. All units were sold before the end of 2019.
