Residential land sales soared 17.6% in the June 2015 quarter, according to HIA-Core Logic RP Data. With buyers increasingly being priced out of the more established suburbs, data suggests they are turning to more affordable residential land in the outer suburbs.

Suburbs in Melbourne’s south east demonstrate the trend. In Clyde North, Bloom, a residential community being developed by Five Squared Property Group, is more than 80% sold since launching less than a year ago.

Five Squared Property Group Marketing Director, Ashley Lewis, explained the area's appeal. “Melbourne metropolitan house prices are continuing to rise, particularly in the middle-ring suburbs. So affordability pressures are encouraging families and young couples to consider other options, like buying land in greenfield sites in good locations.”

Lewis said Clyde North is conveniently located for these buyers. “The south east of Melbourne is really a continuation of the middle-ring suburbs. A lot of our buyers have grown up in those middle-ring suburbs, just in from Clyde North, whether it be Berwick or Narre Warren, or even further in, and they’ve already got family and jobs in the area. And Clyde North is not far from the CBD. It’s no more than a 45 minutes drive.”

Bloom’s first launch, Grevillea, sold out in three months, Acacia sold out in two months, and the latest release, Banksia, is more than 50% sold. A fourth and final release is slated for November.

Lewis explained the development’s appeal, “What buyers are looking for, number one, is a good sized block that they can build on. They’re also looking to be part of a community. They’re looking for more than just a place to live and commute from.

“Buyers are also looking for existing infrastructure. Clyde North is rapidly expanding, but the infrastructure facilities have either pre-empted or kept pace with the development, unlike some other growth areas where the development has come first and the facilities, the transport, the infrastructure has come later,” said Lewis. “Bloom has the infrastructure close by. We’re very close to train stations, freeways, and existing shopping centres.”

Lewis also said that buyers look for added features from the developer. “We’re putting in a cutting-edge art installation at the front of our community. It’s an amazing sculpture installation of the local Billy Button flowers, which will be over five metres high, by award winning artist Matthew Harding. We believe it will make Bloom a place that people are proud to live,” said Lewis.

Bloom is a development of over 120 home sites ranging from 248sqm to 959sqm. Construction of the first two stages is complete. Construction of the third stage is underway, and expected to be complete in December.

“Toward the end of 2016, we’ve got another 400-plus lots being released in a nearby land holding,” said Lewis. “We’re really excited about the future of this area. Our family’s developed thousands of lots in this growth corridor over the last 30 years and we’re very bullish about the area. We’ve got a lot of confidence in the future of the south-east suburbs of Melbourne.”

While property affordability continues to constrain buyers, outer suburbs on the fringes of our cities will be sought after.

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