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The mystery of Stockland
Topic Started: 28 Aug 2012, 12:58 PM (9,818 Views)
Count du Monet
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The mystery is how Stockland buys greenfield for equivalent of 20k a house block and finally after 20 to 30 years of fucking about sells it to you at the equivalent of 230k!

What's a smaller developer up for when they buy greenfield Stockland has been sitting on for years?

http://www.theage.com.au/news/in-depth/the-price-of-a-piece-of-dirt/2007/09/21/1189881777001.html?page=3

This is the salient truth the Bulls hate to have aired. It reveals them for truly what they are!

Quote:
 
Quinn gives a glimpse into the developer mindset when he acknowledges that in its current housing projects, Stockland releases lots in line with the local demand. "If we oversupply the local markets what we are going to do is put prices through the floor."

Stockland's largest project in Melbourne is Highlands at Craigieburn. It will eventually produce about 7200 households, or a suburb the size of Traralgon. It is a massive development from which the company strategically releases only about 400 housing lots each year.

If that large land-holding were divided among 10 or 20 smaller developers, all desperate to sell lots and move on, there is little doubt there would be more homes on the market at lower cost.

While governments at all levels are reluctant to openly discuss such matters, the little-read fine print in some of their documents is revealing.

A 2006 State Government report on Melbourne's outer suburban housing supply notes that in the Hume corridor, 87 per cent of zoned residential land is controlled by one major unnamed developer, which in fact is Stockland. "In the short term to medium term, land holdings within Hume are considered insufficient to foster an openly competitive broadhectare land-supply market."
Edited by Count du Monet, 28 Aug 2012, 01:00 PM.
The next trick of our glorious banks will be to charge us a fee for using net bank!!!
You are no longer customer, you are property!!!

Don't be SAUCY with me Bernaisse
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mots77
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Count du Monet
28 Aug 2012, 12:58 PM
The mystery is how Stockland buys greenfield for equivalent of 20k a house block and finally after 20 to 30 years of fucking about sells it to you at the equivalent of 230k!

What's a smaller developer up for when they buy greenfield Stockland has been sitting on for years?

http://www.theage.com.au/news/in-depth/the-price-of-a-piece-of-dirt/2007/09/21/1189881777001.html?page=3

This is the salient truth the Bulls hate to have aired. It reveals them for truly what they are!

No no no, it's "planning delays" and "government red tape" that's forced up the price of blocks :lol :pop:
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b_b
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Count du Monet
28 Aug 2012, 12:58 PM
The mystery is how Stockland buys greenfield for equivalent of 20k a house block and finally after 20 to 30 years of fucking about sells it to you at the equivalent of 230k!

What's a smaller developer up for when they buy greenfield Stockland has been sitting on for years?

http://www.theage.com.au/news/in-depth/the-price-of-a-piece-of-dirt/2007/09/21/1189881777001.html?page=3

This is the salient truth the Bulls hate to have aired. It reveals them for truly what they are!

Do you understand the difference between sell 7200 lots in a concentrated area like Craigieburn, versus 140k dwellings across the nation? Do you think it is easier to sell $50m worth of shares in a $100M company or in a $50Bn company.

Seriously, is this your best effort?
Edited by b_b, 28 Aug 2012, 05:10 PM.
(S – I) + (T - G) + (M - X) = 0
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NotFooled
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The Bear Whisperer

On the topic of greenfield development, I just saw this advertised: http://www.realestate.com.au/property-residential+land-nsw-bangalow-200338903

$5 million for 14 acres in a small country town with approval for 48 small lots (410 - 700 sqm), many backing onto the Pacific Highway. That's over $100k per lot prior to any infrastructure being added.
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Admin
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Quote:
 
New cars, $10,000 cheques and free home size upgrades: Six spring incentives from house-and-land developers and builders

By Larry Schlesinger
Tuesday, 28 August 2012

Ahead of an expected pick-up in residential sales activity in the established housing market in spring, developers and builders are offering a range of incentives to encourage new home buyers.

Incentives include cash handouts, new cars, free house upsizings and zero deposit home loans.

The freshest offering, commencing on September 1, is a $10,000 cheque Stockland and participating building groups will give to buyers in four of its NSW residential communities.

Buyers will be able to spend the money as they choose, following research by social research group Ipsos Mackay that – among other things – found that childcare and healthcare costs are a growing burden and that government handouts and hand-ups are going to the wrong places.

“Stockland’s spring offer reflects this ‘real’ mentality by letting buyers chose how and when they wish to use $10,000. Unlike other offers on the market, it is completely flexible so customers may choose to pay bills, top up their savings account or take a much-needed holiday,” says Matthew Mears, Stockland’s general manager of NSW residential development.

Here’s a round-up of some of the more prominent special offers from new housing developers and builders:

Stockland’s $10,000 “reality cheque”

From September 1 to October 21 new buyers in four Stockland NSW residential communities – McKeachies Run in Maitland, Murray’s Beach on Lake Macquarie, Brooks Reach in the Illawarra and Bayswood at Vincentia on the NSW south coast – will receive $10,000. The money will be paid on settlement comprising $5,000 from Stockland and a further $5,000 from participating builders, including Barrington Homes, Clarendon Homes, Eden Brae Homes, Huxley Homes, Masterton, McDonald Jones Homes, Perry Homes and Trevelle Homes. A home-and-land package (three-bedroom, two-bathroom home with garage) starts from $323,950 at Brooks Reach.

Read more: http://www.propertyobserver.com.au/land/new-cars-$10000-cheques-and-free-home-size-upgrades-six-spring-incentives-from-house-and-land-developers-and-builders
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TheRazorsEdge
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NotFooled
28 Aug 2012, 05:24 PM
On the topic of greenfield development, I just saw this advertised: http://www.realestate.com.au/property-residential+land-nsw-bangalow-200338903

$5 million for 14 acres in a small country town with approval for 48 small lots (410 - 700 sqm), many backing onto the Pacific Highway. That's over $100k per lot prior to any infrastructure being added.
I had a WTF moment there until I googlemapped and found that Bangalow is only 13km from Byron Bay. Given the constant demand for Byron, Suffolk Park,Lennox Heads etc, this makes some kind of sense, (in the fucked up world that is Australian RE anyway).

Given that you can get 5 acres for 390K in Murwillumbah (http://www.realestate.com.au/property-residential+land-nsw-murwillumbah-2816343) one has to wonder how much the approval to subdivide is worth, and how much is just proximity to Byron.
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NotFooled
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The Bear Whisperer

TheRazorsEdge
28 Aug 2012, 06:10 PM
I had a WTF moment there until I googlemapped and found that Bangalow is only 13km from Byron Bay. Given the constant demand for Byron, Suffolk Park,Lennox Heads etc, this makes some kind of sense, (in the fucked up world that is Australian RE anyway).

Given that you can get 5 acres for 390K in Murwillumbah (http://www.realestate.com.au/property-residential+land-nsw-murwillumbah-2816343) one has to wonder how much the approval to subdivide is worth, and how much is just proximity to Byron.
Blocks in Bangalow are simply not selling. I have seen blocks with all infrastructure done in a subdivision (Green Frog Lane) up for sale and never selling for as long as I have been monitoring that area. See: http://www.realestate.com.au/property-residential+land-nsw-bangalow-200253809
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TheRazorsEdge
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NotFooled
28 Aug 2012, 06:33 PM
Blocks in Bangalow are simply not selling. I have seen blocks with all infrastructure done in a subdivision (Green Frog Lane) up for sale and never selling for as long as I have been monitoring that area. See: http://www.realestate.com.au/property-residential+land-nsw-bangalow-200253809
Hmmm. 280K for block of unknown size in ... Bangalow. Doesn't appeal to me, but then I think it's all overpriced.

What is the cost of carry for a block like that? Probably a coupla grand a year in rates. I guess the developers are thinking that the recovery is right around the corner so they are holding out for their imaginary price.

How big do you think that block is?
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NotFooled
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The Bear Whisperer

TheRazorsEdge
28 Aug 2012, 06:44 PM
Hmmm. 280K for block of unknown size in ... Bangalow. Doesn't appeal to me, but then I think it's all overpriced.

What is the cost of carry for a block like that? Probably a coupla grand a year in rates. I guess the developers are thinking that the recovery is right around the corner so they are holding out for their imaginary price.

How big do you think that block is?
I also think they are overpriced. According to another add they are around 720 sqm: http://www.realestate.com.au/property-residential+land-nsw-bangalow-2695041

Much better value to buy an existing property.
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Count du Monet
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In a typical year about 120,000 house blocks are sold throughout Aus, at a typical price of 200k that's about 24 billion dollars worth.

But how large is the gouge?

Lets use NF's example.

Land for a 48 lot subdivision.......................Price per acre:$357,143

However some land a stones throw away that hasn't been approved for subdivision.

Price per acre:$20,000

http://www.realestate.com.au/property-house-nsw-bangalow-104296084

So something thats selling undeveloped lots for $100,000.....................it can be assumed that the real value of those lots $25,000 at best.

So you can factor in a 75k gouge of the average block for the raw land alone.

120,000 x 75,000 = 9 billion dollars of raw land gouge in Aus each year just for house blocks.

Even though that's the biggest gouge, there's still a few more on top of that.
The next trick of our glorious banks will be to charge us a fee for using net bank!!!
You are no longer customer, you are property!!!

Don't be SAUCY with me Bernaisse
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