Waterlea at Walloon sells to Melbourne developer for $70m

A Melbourne-based developer has scooped up the balance of a major housing estate at Ipswich for $70 million. FULL STORY:

The 177-hectare Waterlea estate in Walloon already has a childcare centre and dining precinct, with a Catholic school and 30 hectares of open green space also proposed for the site. Picture: Supplied

The balance of a major housing estate in Ipswich’s rural western corridor has sold for about $70 million, a figure a competing developer says should be of major concern to future home buyers.

Waterlea, a $350 million project about 13 kilometres west of the Ipswich CBD at Walloon, was launched in 2017 by Sydney-based RBG Services and Melbourne-based IDA Property Group and was offered for sale in July this year.

Its masterplan includes 1800 lots – of which 400 have been sold – over 177 hectares, as well as an established childcare centre, a food and retail precinct anchored by Phat Boyz Smokehouse and Kitchen, a $700,000 playground, and a future proposed secondary school.

The 177-hectare Waterlea estate in Walloon already has a childcare centre and dining precinct, with a Catholic school and 30 hectares of open green space also proposed for the site. Picture: Supplied

Melbourne-based developer ID_Land recently acquired the remainder of the estate for $65.5 million, as well as some titled lots that had already been delivered, and has plans to develop the remaining 1400 lots over the next decade.

“When we were looking for Queensland sites we essentially had the same criteria as we did in Melbourne – well-located land parcels in growth regions where we could continue to deliver lots for the next five to 10 years,” ID_Land joint managing director Matthew Belford said.

“Waterlea fit the bill, with multiple lifestyle amenities both within the project, and nearby, so we moved quickly to secure the remainder of the development.

“We think the strategic Waterlea site provides affordable land supply to the south-east Queensland growth region, as affordability becomes more and more challenging in Australia’s major cities.”

The Queensland Times understands the purchase price of Waterlea was based on current selling prices for the lots in the existing part of the estate.

According to a competing developer, the $65.5 million ID_Land is paying is sure to have a negative impact on housing affordability as it means buyers will have to pay about $50,000 per block of land before any other costs – such as those to connect services and develop land – are considered.

Lennium Group development manager Ian Worthington.

Developer Lennium Group claimed in September that its Highland project, a residential community also planned for the corridor between Walloon and Rosewood, had been delayed the past five years due to mismanagement by Urban Utilities.

The high purchase price of Waterlea was, according to the group’s development manager Ian Worthington, “no doubt” the result of Highland being kept out of the market.

“Like any industry where you’ve got a limited supply and lots of demand, the end result is that prices go up significantly,” he said.

“Fragmented landownership and poor management and poor planning of infrastructure is contributing to the housing affordability crisis that we are in.”

Mr Worthington said there were other factors that would have contributed to the acquisition price, including Ipswich’s “booming” property market, but the monopoly Waterlea has would have bumped it up even further.

“The reality is, as opposed to other areas where you’ve got other developers, here there is only one major developer,” he said.

“From our perspective, it’s just a frustration that we’re not able to provide lots of housing in the current market and give that diversity of choice to purchasers.”

An Urban Utilities spokesperson said in September it was “working closely” with the developers of both Waterlea and Highland to connect Lennium to the network.

On Tuesday, Mr Worthington said trunk sewerage delivery to Highland still had not been guaranteed and the 140 lots approved for the development were still unable to be sold.

RBG Services declined to comment.

Originally published as Waterlea at Walloon sells to Melbourne developer for $70m