Huge population growth has forced the Victorian State Government to act by the freeing up of 24,500 hectares and will become housing blocks in 2014-2015.
The expansion will double Melbourne’s land supply, keep housing affordable and ensure growth happens in a manageable way says Planning Minister, Justin Madden.
Developers have been frantically looking to find land for an expected 1.44 million extra people living in Melbourne within 25 years and under the ‘Melbourne @ 5 million’ strategy, this will help to create 284,000 houses to be built in growth areas and include 134,000 in new communities.
Currently, farms are being bought in record numbers by developers and investors as demand causes the urban sprawl to spread faster than ever.
According to many industry experts, available land supply has reached crisis point as the availability of housing blocks have dropped to a five year low with almost 4,000 available in April 2005 to a record low of 1,126 in all growth areas at the end of April this year.
Certainly, this shortage of available blocks has forced prices higher and higher with the median price in growth areas rising 45% over the past 4 years alone; for example, a median of $125,000 in early 2006 is now worth $181,500.
Looking forward to 2015, median prices in growth areas are forecast to be $292,000 in Wyndham, $277,000 in Casey, $265,000 in Hume, $260,000 in Whittlesea, $252,000 in Cardinia and $181,000 in Melton.