LAND sales in Wonthaggi have soared in the past 12 months, and if numbers continue to accelerate, there could be a six month back log for blocks of land.
The price for a block of land in Wonthaggi has steeply increased in the last few years.
In the Vicars Estate, prices started at $112,000 when blocks of land were made available between 18 and 24 months ago.
That number has increased $20,000 and as of last week, the cheapest block was $132,000.
The 79-lot estate has blocks ranging from 403sqm to 809sqm, although most of the lots are between 600sqm and 800sqm.
The developers enforced a restrictive covenant for the 10 years following the date from when the subdivision plan was registered by the Land Titles Office, to prevent the estate turning into an area full of units.
The covenant stops land-buyers from building more than one private dwelling per block, prevents subdividing the lot and stops any houses being built that are less than 110sqm.
Real estate agent Kainen Schrape at PBE Wonthaggi said only 11 lots were remaining in the Vicars Estate last week.
He said the Tower Views Estate also has only four blocks left out of 22 lots.
“The Tower Views has been on the market for years but it’s only just starting to kick along recently,” Mr Schrape said.
House prices are driven up by their close proximity to the beach, he said, and even though Wonthaggi is only a five to 10 minute drive to the beach, it’s still one of the cheapest areas.
“Wonthaggi’s a lot more affordable than Cape Paterson or Phillip Island or even Kilcunda. Wonthaggi’s still pretty cheap. There are a lot of other estates that are filling up just as quickly”.
“For most of the estates, it was going to be seen as an oversupply when they were released and now it’s an undersupply.”
He said it can take a few months to develop land, get titles, and build roads and other infrastructure for estates.
“There won’t be any new titles around until probably mid-next year.
“If all this land dries up by the end of the year, there could be a shortage of six months.”
He said there are a lot of people from Melbourne who are interested in moving to Wonthaggi, who see it as a “good place to live”.
“It’s close to services, specialists and a good hospital, it’s affordable but close to the beach,” Mr Schrape said.
“Everyone moving here are people coming to live here. Most of them are retirees, but some families are relocating here and getting work, there’s a whole mixture.”
Recent Census data shows the average Wonthaggi resident is 52, with monthly mortgage repayments of $1171 and average weekly household income of $758.
“In Wonthaggi, people are still close to their friends and family, or their job,” Mr Schrape said.
“An hour or an hour and a half to some people, they’d probably sit in traffic for that long to go to work.”
While Wonthaggi’s growth spurt has soared in the past 12 months, it’s likely land sales will slow down as developers need time to build the necessary infrastructure in estates.