Jason Rose

BILLIONAIRE property developer Lang Walker appears to have had the last laugh over his controversial Kew Cottages project in Melbourne, having sold 20 million-dollar-plus homes since the weekend.

The luxury homes sold for between $1.6 million and more than $2m in off-the-plan sales that were another show of strength for a Melbourne residential market. The city’s auction clearance rates have been above 80 per cent since early May.

The 20 houses were part of a release of 49 in the second stage of the $400m project, a sensitive housing redevelopment that blends 100 disabled residents of the former Kew Cottages into the new estate known as Main Drive Kew.

Despite the botanical backdrop the inner-east project has not been a bed of roses for joint developers Walker Corporation and the Victorian government.

A development agreement, under which the government receives the land price and then shares in profits after a certain hurdle rate, has resulted in an ombudsman’s investigation, while the development has also been under fire from residents and the local council.

Walker Corp has also been subject to a court case in which high-profile Melbourne developer Kevin Hunt, once the Victorian head of Mirvac, claimed to be owed millions of dollars from the Kew project.

However, Mr Walker put all of that behind him this week to declare the project the jewel in the crown of Australia’s largest private residential land holder.

“Kew is our baby,” said Mr Walker, whose Walker Corp controls up to 40,0000 building lots across Australia.

The 27ha Main Drive Kew project involves about 400 homes to be delivered across seven stages. Many of the white, look-alike contemporary houses are being designed around 1000 or so mature trees, most of them heritage listed.

Walker Corp has targeted six Green Star ratings for homes, which in the second stage will be sized from 300sqm to 440sqm.

Mr Walker said the sale of 20 in a few days did not come as a complete surprise after 36 of 55 homes released in the earlier first stage sold on the first day.

The remaining homes sold within the next two weeks.

He said proximity to six of Melbourne’s top schools was a big attraction for Asian buyers.

The project had convinced him Melbourne continued to lead Australian housing markets, followed by Western Australia and South Australia, Mr Walker said.

In WA, Walker Corp has 4000 blocks in a joint venture with the state government.

He said blocks priced about $200,000 were selling well. In SA Walker Corp has a 1000-lot residential development at Mt Barker in the Adelaide Hills and a massive 12,000-lot subdivision north of Adelaide.

“The Mt Barker land is selling extremely well at a price point below $200,000, while I’m hopeful the other land, which is virtually a new suburb, will be approved later this year.”

Walker Corp also holds 15,000 to 17,000 hectares in Sydney’s southwestern corridor, but Mr Walker said that market was going nowhere because of a state government approval process so bogged down it would take years to catch up with the rest of Australia. Queensland was similarly stymied by increasing infrastructure charges.