A RECORD sale price for a block of land in Shell Cove was reached last Wednesday, with 2 Coolum Parkway selling for $625,000.
The sale is being seen as a positive indicator for the Shell Cove project’s ongoing viability.
Bevans Shellharbour Village agent Gino Spinelli said since February, Shell Cove land sales had
been increasing.
This also included a block at Killalea Dr, which sold for $455,000.
“I hadn’t sold land for a long time, but have sold three blocks of land there in the past two months, and for good prices,” he said.
Mr Jesson said the sales were an encouraging sign for the project’s future. “It’s not just the sale of that parcel of land and that price,” he said.
“More importantly, the number of sales are averaging in the mid-to-high 80s per year for the third year. This is the third year in a row sales are up.”
A decision on the council’s application for a $10 million grant as part of the $100 million first round of the Federal Government’s Regional Development Australia Fund was expected next month.
A grant would enable the council to kick-start the $140 million boat harbour project, which was stalled in 2008 after project manager Australand said they were unable to start work due to the international credit crisis.
Former planning minister Tony Kelly approved the boat harbour precinct concept plan in February and Australand had previously said the entire Shell Cove development would create 6061 direct, indirect and supported jobs.
About 1500 lots have been sold in Shell Cove so far.
Shellharbour Conveyancing Services licensee Rochelle Griffin said incentives such as the Home Builders Bonus and the ensuing reduction in stamp duty had motivated the market for vacant land. “Shell Cove is definitely taking off,” she said. “The hope of the marina is encouraging to buyers.”
Mr Spinelli said these incentives making it more viable to build your own home had likely contributed to the sales spike, but also attributed it to other factors. “Everyone’s sort of waiting with the marina,” he said. “If the marina goes ahead it will change all the prices. It hasn’t even happened yet, but there’s positive signs because of things like the council’s LEP. People are looking to live in the Shellharbour area.”
An Australand spokesman said land sales across all market segments had resulted in a “good year” thus far.
Mr Jesson said the council’s federal grant had been well supported by the area’s business community and believed they had lodged a strong application. “We are confident the project is viable and will bring tremendous advantages to the Illawarra, including helping the shameful youth unemployment rate in the Shellharbour local government area, which is in the high-30 per cent range,” he said.
If the federal application was unsuccessful, the council had already announced plans to apply for a $20 million low-interest loan from the State Government.
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