High demand for property and building materials during the pandemic has seen sale prices for dwellings in a Warrnambool apartment development increase by about $40,000 each.
Sales for second stage of The Botanic development in Mortlake Road opened this week. One-bedroom apartments are priced between $325,000 to $365,000 and two-bedroom apartments range from $420,000 to $480,000.
In July, when stage one construction began on the development, two-bedroom, two-bathroom townhouses were priced at either $325,000 or $425,000.
The $14 million Mortlake Road development is made up of 58 apartments, seven townhouses and three shops with apartments.
Developer Mark Schneider said prices had increased in response to the market pressures and demand across the building and property industries.
"It didn't really change significantly," Mr Schneider said.
"We were looking at mid $300,000s to mid $400,000s for most of the apartments and they might have come up about 10 per cent."
Larger townhouses at the rear of the site, in yet-to-be released stages, are priced around $500,000, he said.
Mr Schneider said the project was over four stages and the development would be completed in three to four years.
Stage one construction began in mid July and was due for completion by December but was delayed due to difficulty sourcing materials during the pandemic.
The four apartments in stage one are now expected to be completed in late February with the first residents due to move in March or April, depending on settlement.
"I'd like to think they'd all be in by Easter or a little earlier," Mr Schneider said.
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"We're probably a couple of months behind where we wanted to be but considering the state the market has been in I think we're doing very well," he said.
"It wasn't even lack of trades, it was lack of material.
"The delays were no surprise when you consider what's going on with the whole lack of timber in the framing industry," Mr Schneider said.
"There were lots of challenges. A lot of builders were moving to steel frames and that was putting demand on steel and the price of that was going up and there were delays on supply for that as well so it had a ripple effect."
He said the four apartments, which have sold to retirees, a single person and an investor, would be at lock-up stage this week and the fittings and fixtures would be installed in the next few months.
Mr Schneider said stage two construction would begin in February and building two included 12 one and two-bedroom apartments and three shops at the front.
"We would expect that within 18 months we would have that close to completion," he said.
The apartments are for sale through Warrnambool's Harris & Wood and agent Matt Wood said two properties in the stage two release had sold within hours of going on the market.
He said he sent information to interested people once it became available and "two acted quickly, they didn't want to miss out".
Mr Wood said the apartments were unique in the Warrnambool market and offered "first home buyers, downsizers and investors great value in a fantastic location".
"I think it's a combination of the location, services and a change of lifestyle," Mr Wood said. "People are looking for low-maintenance properties where you have all your services at your doorstep and you can go and enjoy what time you have off."
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