Bunkers Hill, Dennington: Two rezoned farms in Victoria’s west sold for $40m-plus

Two properties totalling more than 70ha in Victoria’s west have been sold to residential developers with plans for more than 900 homes.

A rezoned family farm on the outskirts of Ballarat and one in outer Warrnambool have been sold in deals worth more than $45 million combined.

This month a 41ha holding at 150 Coghlans Rd, Dennington, near Warrnambool and a 32.79ha property at 339 Ballarat-Carngham Rd, Bunkers Hill, have been sold to separate residential property developers.

A Warrnambool family has sold the Dennington property after 110 years of ownership to an interstate developer, which was assessing the possibility of a 450-500 lot development near the Merri River.

The land was listed for sale earlier this year, with a price guide in the high $20 million price range, receiving more than 90 inquiries.

Latitude Real Estate Commercial development sales and acquisitions manager Michael Lowe handled the sale but could not comment due to confidentiality arrangements.

The 150 Coghlans Rd property falls within the Warrnambool City Council’s North Dennington development area, 1.5km from the Warrnambool saleyards.

A 41ha holding at 150 Coghlans Rd, Dennington could be used for a 450-500 lot residential development.

Two hours drive northeast of Dennington, the 32.79ha Ballarat West property has been sold to a Melbourne-based developer with 480-500 lots proposed, in a deal understood to be worth more than $20 million.

Buxton Ballarat director Mark Nunn and Gull Co joint managing director Cameron Gull managed the deal, but could not comment due to confidentiality.

The property, which was sold by a Ballarat farming family, falls within precinct four of the council’s Ballarat West Growth Area which is estimated to provide about 18,000 new houses across 1717ha of greenfield land to accommodate a population of more than 40,000 people.

With more land in the Ballarat West area being rezoned, Mr Nunn said many landholders were inquiring about what could be done with their land.

These two major sales come prior to application of the state government’s windfall gains tax which will begin on July 1, 2023.

Land which is subject to a government rezoning and results in a taxable value increase of more than $100,000 but less than $500,000 will be taxed at 62.5 per cent while if there is an increase of $500,000 or more: a tax rate of 50 per cent will apply.

Earlier this year a 120ha farm in Victoria’s north was also sold for about $40 million-plus to a developer with plans for a 1200-lot residential subdivision.