Casula development site sold cheaper than four years ago
An 1100sqm block of Casula land with an existing DA to subdivide into 29 blocks has been sold for $220,000 less than it exchanged hands for in 2015.
The block, 44-46 Maple Rd Casula, was sold for $5,080,000 this week as part of a receivership sale.
The developers, located overseas, purchased the block of land four years ago for $5,300,000. Costs for the DA plans are rumoured to exceed $400,000.
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Ray White Commercial principal Peter Vines says the block was sold to a private developer based in the south west of Sydney.
He says the developer who purchased the land initially couldn’t get the pre-sales necessary to fund the development and fell in a heap.
“They paid too much when they purchased it and were put into liquidation,” he says.
“They were funded by a private financier and they are typically hugely active in providing loans to higher risk developers because the banks don’t have the appetite to fund them.
“A lot of developers can come unstuck when buying land because it is not producing an income and it is hard to sell down the stock.”
This article from The Daily Telegraph originally appeared as “Casula block sold for $220,000 less than 2015 price”.