Pace completes two of Melbourne’s largest staged projects as demand surges for affordable housing
Pace Development Group has completed two of Melbourne’s largest staged projects as the marketplace surges for affordable housing.
The end-to-end developer has delivered its Sunshine North project Pace of Sunshine North, and their popular Blackburn mixed-use development, Pace of Blackburn, in a market plagued by rising interest rates and high construction costs.
Pace secured a settlement rate of 97 per cent across the two projects, and a 99 per cent valuation success.
Pace Development Group Sales and Marketing Director Ash Bramich says that despite negative media coverage on house prices, the opposite is occurring on quality projects throughout Melbourne.
"Final developer stock released upon completion at Blackburn is now selling at 10 per cent higher than the off-the-plan price list, while a recent Sunshine townhouse sold for $60,000 above its original sale price," Bramich says.
The completed townhouses at Pace of Sunshine North. Image supplied
In May, Pace of Blackburn settled its final stage of 126 apartments – of a total 288 residences in the project – after the completion of its third and fourth buildings.
Across the city, Pace of Sunshine North saw the last stage of 36 townhouses complete, bringing the total number of residences to 376 on a project that started five years ago.
With escalating building costs driving a 5-20 per cent increase in the price of future projects, bank valuers are acknowledging the affordability of current stock versus upcoming developments.
Many existing Melbourne apartments are now returning in excess of five per cent gross – a figure that hasn’t been seen for over 20 years. A looming undersupply of housing, coupled with rising migration, rent, and the return of first-home buyers, supports this evaluation.
This sentiment is reflected at Pace of Blackburn where 18 apartments were leased within three days of settlement.
A completed kitchen in Pace of Blackburn. Image supplied
The project overcame many of the challenges that faced the property and development industries at the time. Despite site restrictions, reduced labour, material and supply chain shortages, Pace Development Group remained resilient, adaptable and effective, delivering its largest apartment project on record.
Pace of Blackburn’s completion follows record sales at The Darley, where a three-bedroom apartment recently sold for $3.626 million, equating to $18,500 per sqm, surpassing a rate per sqm typically found in sought-after suburbs like Fitzroy or South Yarra.
The project, currently under construction within the historic grounds of Flemington Racecourse, supports a strong demand for off-the-plan residences with promising projected returns.
Pace have completed over 100 projects across Melbourne in the last three decades.