The prospective sale comes after media reports that a Melbourne property developer had recently snapped up 60 hectares across three properties off Boiling Down Road for $18.5 million.

Developer Graeme Rodger has owned the 50 hectares at the corner of Wangoom and Horne roads for the past 10 years but strong interest in the land has led him to put it on the market through his Land in Warrnambool business.

Development manager Sam Stevens said major players in Victoria's property development sector had been in touch about the land.

"Basically, we have so much interest from different parties we thought we would formalise this process and give them all an opportunity to express their interest," Mr Stevens said.

"If they legitimately want to purchase it we will have a look at those offers. If none of those offers are where Graeme believes they should be we will continue with developing it ourselves."

He said the business already had a pipeline of developments it was working on, including at Warrnambool's Northern Edge Estate and land on Wollaston Road, in Koroit and in Colac.

"We have plenty on our plate to continue on with," Mr Stevens said.

Earlier this year Natalie Stevens unveiled a cluster-style housing layout for the Wangoom and Horne road land parcel.

The East of Aberline Precinct Structure Plan proposes to provide up to 4000 homes in the city's north-east and is currently going through the planning process.

Once the planning process is complete, the land will be rezoned and various parcels will be able to apply for planning permits.

A Warrnambool man, who did not wish to be named, said the state government's proposed new windfall tax had convinced him to sell his parcel of farming land that is subject to the East of Aberline Road Structure Plan.

He said the land had never been on the market but he had been approached numerous times over the past three years about selling.

But when the state government announced the new windfall tax in this year's budget, he decided it was time to sell.

"Because of this windfall tax that's coming in mainly and, if it was rezoned, we couldn't afford to pay the rates and ongoing costs," he said.

"We had no intention of developing it ourselves."

The windfall gains tax - which could net the government up to $40 million a year - will apply to uplift in the value of land due to rezoning decisions. Properties above $500,000 will attract a tax rate of 50 per cent to the total uplift.

The tax has upset farmers and developers who say it could increase the costs of a block of land for buyers by as much as $30,000.

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