With a number of proposed land developments in the South West failing to materialise after unsuccessful finance applications, a big subdivision is now under way because of the strong financial credentials of syndicate members behind the project.
After several years in the planning, the Peard Real Estate Group teamed with two other property companies to launch a major land development in Witchcliffe, a small hamlet 9km south of Margaret River.
The 205-block subdivision has been put together by Peard Real Estate and other syndicate members Alcock Browne-Neaves Group and Ron Farris Real Estate to develop the 52.63ha site - Reserve on Redgate - belonging to local landowners David and Diane Holland.
"The project has now received all the approvals to commence development and we are pleased that a number of lots from stage one have already been sold," Chief Executive of the Peard Real Estate Group, Peter Peard said.
Although the development includes small blocks of 700sqm, it also includes blocks up to 7,000sqm and this is expected to appeal to buyers moving to Margaret River region who want to live on larger rural-style blocks. Prices start from $214,000.
Mr Peard said the $50 million residential development, could become the catalyst for further residential investment in the area.
"Several proposed land subdivisions in the area have failed to materialise because financial institutions have been more conservative in their lending since the global financial crisis," he said. "The success of this development, we believe, will give greater confidence to lending institutions to provide funds to land developers operating in the South West property market."
Mr Peard said he expected Witchcliffe would be a popular location for future land developments because of its strategic location and competitive property market.
"A number of other major land developers are now focusing on this largely overlooked area of Margaret River," he said.
Witchcliffe is close to a number of major lifestyle attractions in the area including the popular Redgate Beach.
SOURCE: The West Australian, Wednesday February 16 2011