Wolfdene Honours Expired Contracts at Brompton
Wolfdene has honoured more than 160 expired contracts at its talisman project ‘Brompton’, located in the heart of the South East’s burgeoning growth corridor.
The deals, which were executed in 2014 during the initial launch phase of the project, became void in late 2017 due to sunset clause provisions in the contract.
The move is an encouraging one for the property industry, which has come under fire recently after a number of other developers tore up contracts to capitalise on market escalations.
“The first step for us in ramping up the project after a number of years in a holding pattern due to ongoing delays was re-executing those early contracts at their original prices,” said Wolfdene Managing Director, Michael Goldthorp.
“There’s always an element of risk purchaser’s take on when committing to off-the-plan real estate… however, under the circumstances we believed it was unreasonable for the delays to hit the buyers financially given the time they’d spent waiting for their land.
“While this came at a cost of $20m in revenue to the cash flow, we believed it was the right thing to do in terms of being a responsible corporate citizen,” he said.
During the 3-year period 2014-2017, median lot prices in the South East have increased in excess of 63%.
Since relaunching in January 2018 Brompton is the best-selling development in the south east, averaging more than $16m in revenue across 45 sales per month.
It’s 100-hectare masterplan will supply in excess of 1,400 homes for more than 3,000 residents.
“With an end value of $610m, ‘Brompton’ remains one of the most commercially attractive and in demand developments in Victoria,” said Goldthorp.
“It benefits from a high-profile location on Westernport Highway and is the closest new community to well established areas like Langwarrin and Frankston where price escalations have made it very difficult for first homebuyers to get into the market,” he said.
Directly adjacent to Ranfurlie Golf Club and just minutes to the Cranbourne CBD, Royal Botanic Gardens, Casey Fields and Casey RACE, Brompton is also a short 15-minute drive from Frankston and Port Phillip Bay.