Buyers who snapped up blocks of land in a new Warrnambool subdivision have seen their property jump about 30 per cent before they have even had a chance to start building on them.
Work has recently begun on the 43-lot Riviera Estate, just off Mortlake Road, and is expected to be completed and titled by the end of the year.
The estate - which is accessed via Leo-Francis Drive - has been the subject of lobbying by residents who have concerns about increased traffic through the neighbouring Turner Estate.
VicRoads has plans to install extra turning lanes along Mortlake Road to help ease congestion.
Harris and Wood director Danny Harris said the blocks in the Riviera Estate were fully sold six months ago after only being on the market for 12 months.
"It exceeded our expectations, absolutely," he said.
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Buyers have been snapping up blocks of land as the cost of buying an established property in the city soars, making building a more affordable option.
Mr Harris said the blocks were selling in the 180,000 to $190,000 range when they first went on the market.
"I would estimate that those same blocks, given resales I'm seeing in other estates, would now sell between $230,000 and $240,00," he said.
"That's great for the people that took the plunge early or had the foresight to buy.
"It's also meant that anyone who has purchased those blocks, not that there has been the ability to resell them yet, they've all got equity in those blocks before they even settle at the moment."
Mr Harris said the developer had held on to five sites in the estate which they intended to release probably at the end of the year.
"How quickly the sales were happening, they wanted to make the most of the market and they expected the market was only going to continue to rise, which is the way it has played out," he said.
"They'll be able to yield a little bit more for those."
The Ballarat-based developer - The Gull Group - intends to develop and release 120 housing lots on land along Wollaston Road at some stage in the future, but there is no timeline yet.
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