A sprawling golf course located in Melbourne’s south-east has recently been put up for sale, with the seller aiming for a substantial price of $150 million. The intention behind this sale is not only to secure a profitable deal but also to contribute towards addressing the pressing issue of the state’s housing crisis.
Recently, the seller put up for sale a sprawling Melbourne golf course, comparable in size to a small suburb. The seller is optimistic about securing a hefty $150 million price tag for the property, with the intention of contributing towards resolving the pressing housing crisis in the state. A potential development opportunity lies within the 70.4ha of residential zoned land at Cranbourne Golf Course, with the capacity to accommodate approximately 1350 new homes.
Peter Sagar, Darcy Tobin, and Paul Callanan from LAWD made the listing through an expressions of interest campaign. Peter Sagar, the senior director of LAWD, expressed satisfaction with the progress of the development campaign, noting that there have been 50 enquiries within a few weeks.
“You couldn’t ask for better interest from a corporate development perspective; all the big names you would expect are interested,” Sagar said.
“I would imagine 1100 to 1350 residential allotments that may include solemn retirement and land lease communities between that.
“The residential allotments will be highly sought after. The corporate developers must participate to fulfil the needs of buyers.”
He stated that buyers viewed the development as noteworthy. However, it is just a small contribution towards addressing Melbourne’s housing shortage.
“Most of the immigration and population growth coming into Victoria are seeking a detached house of some kind and not an apartment,” Sagar said.
“Planning regulations need to have green-filled and infill developments working together to have any hope of meeting any of their forecasts.
“We already have higher construction costs, uncertainty from builders and higher taxes from the state government who are not providing development incentives.”
The eastern and southeastern regions have seen a number of residential developments with golf courses, including Kingston Golf Links. Leigh Deagan, the Director of Golf at Yering Meadows Golf Club, mentioned that while the closures of other golf clubs haven’t directly affected them, there could be potential advantages.
“The developer can see a real advantage to make some money with that land space; the council can see a golf course of quite valuable land,” Deagan said.
“What can happen is golf clubs can’t always afford and keep up with the upkeep, and golfers have to find somewhere else. It would be pretty disruptive if you were a long-term member and relocated to a different club.
“The Cranbourne Golf Course sale will be interesting, especially its impact on the Jewish Community. I heard out of the $150m plus sale, at least $120m could be going to youth sporting facilities for the Jewish community. That’s a fantastic legacy in itself.”
A dedicated group from the Melbourne Jewish community established the Cranbourne Golf Course in 1954. Led by Sydney Kaufman, Harold Lasky, and Harry Cohen, they purchased 300ha of land to create a secure and enjoyable space for the community to partake in the sport.
A group of individuals successfully gathered funds for a golf course by engaging in a door-to-door campaign. The money collected was allocated towards the establishment of the clubhouse and the construction of the course. While expressing support for the conversion of golf courses into residential allotments, Deagan expressed scepticism about its ability to address Melbourne’s housing crisis.
“I’m not sure if new golf course housing will provide relief for first-home buyers as the land is prime real estate,” he said.
“Looking at the old Eastern Golf Club site in Doncaster, I saw homes going for about $1.2m. If you’re already in the market in those areas, you could buy nearly anywhere you wanted to.”
In a recent transaction, the Kingswood Golf Course in Dingley was acquired by experienced developer Nigel Satterley. The sale price remains undisclosed, but the property attracted interest from 10 different groups, including Mirvac. There are growing apprehensions regarding the development of the project.
Tania Asper, the planning and building manager for the City of Casey, acknowledged their knowledge of the ongoing expression of interest process regarding the sale of the Cranbourne Golf Course.
“The site is already zoned to allow residential uses,” Asper said.
“If a purchaser seeks a future residential development on the site, we anticipate working closely with the new owners of the land to deliver a quality outcome that provides a net community benefit for our residents.
“The expectations for redevelopment of golf courses are outlined in the State Government’s Planning Guidelines for the Conversion of Golf Course Land to Other Purposes and it is our expectation that any future development proposal to be closely guided by these Guidelines.”
The acting chief executive of Dingley City Council, Samantha Krull, expressed her hopes that the sale of the former Kingswood golf course site to Satterley would provide an opportunity for the new owner to establish a fresh connection with the community and actively involve them in shaping the future of the site.
Discussions regarding the future of the Kingswood Golf Club have been ongoing for more than ten years. The proposed development has faced significant opposition from the community, with approximately 8,000 objections raised. The council has also strongly opposed the development, citing concerns such as increased flooding risk, high density, loss of habitat and vegetation, loss of open space, and inadequate design.
“With the site rezoned by the Planning Minister last year, we are now extremely interested in how the developer will provide open space and community infrastructure to meet the needs of this new Dingley Village community, and how the site’s trees and green space will be protected to respond to issues of urban heat and the preservation of our urban forest,” they said.
“At this stage, there is no approved development plan that will answer all these questions, and the Planning Minister has made it clear that the local community and council will still have a role to play in shaping these important details that go well beyond the decision to rezone the land.