City’s $22m bonanza

City’s $22m bonanza

Cedar Woods’ bid of $22,350,000 sealed the deal about 10 minutes after the auction opening.

It was a slow start on auction day but Satterley Property Group got the ball rolling with an opening bid of $14 million.

Despite the reserve price remaining private, Cedar Woods’ state manager WA Stuart Duplock said the buying price was in the ‘ball park’ of what the company had expected the land to go for.

The City owned the land, next to Whiteman Park on Woollcott Avenue, for more than 30 years and had bought it for sand mining purposes.

Property rates charged by the City of Swan prompted Bayswater to sell.

With a City of Swan district structure plan already in place, Cedar Woods’ Mr Duplock said the company planned to develop a residential estate with more than 350 lots, a primary school and an open space incorporating the existing wetland area.

He said with today’s land prices, lots would be expected to sell for about $160,000 to $250,000.

‘We foresee the market for this development to be first and second-home buyers who are looking for an affordable home in a fast-growing, well-serviced community,’ Mr Duplock said.

‘Based on the average 2.5 people per household, the estate should house about 1000 people. With a district structure plan already in place, settlements are expected to commence in late 2015.’

It will be the first estate Cedar Woods has developed in Perth’s north-eastern corridor.

Brabham is 22km northeast of the Perth CBD, close to Whiteman Park and the Swan Valley and the Ellenbrook (4km) and Midland (10km) town centres.

Bayswater Mayor Terry Kenyon said the auction generated large interest and the City was happy the reserve price was exceeded.

‘The money will be held in Council’s municipals funds to be allocated into appropriate reserve accounts on the decision of council,’ Mr Kenyon said.

‘Council is considering the best use of those funds, including the City’s reserve accounts and future infrastructure development.’

The funds could go towards a major capital works program but at this stage Mayor Kenyon said he was unable to say what that might be. But he said a masterplan that included upgrades to the Les Hansman Community Centre and the Mertome Village was being drawn up.