A swath of Melbourne hobby farms are being prepared for a $320m sell off that will turn them into the city’s next housing estates.

Five super-sized blocks ranging up to 50ha in size are expected to put upwards of 2500 future house sites up for grabs in the next month.

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The first to hit the market is a 16.51ha, 220-home site in Tarneit.

The Davis Rd and Kenning Rd site covers four properties, all formerly hobby farms, that were amalgamated by Sydney-based investor group Qatarbar in an about $10m shopping spree from December 2013 to January 2015.

Housing estates could be set to be built from Davis to Kennington roads in Tarneit.

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Industry sources have indicated it could snare more than $30m when another developer buys it, after the group arranged planning approvals for the development which also includes a super lot that could be turned into childcare or a multi-residential hub.

Core Projects are selling the site.

Director Trent Malcomson could not discuss the price or ownership, however said his firm had already received calls about the site from a range of Victorian developers.

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“We have probably had more interest in this site than we have for anything in the past 18 months,” Mr Malcomson said.

“We are definitely seeing a rise in demand.”

While buyers based in China, Singapore and Malaysia had considered the properties, he noted demand from offshore remained below recent peaks.

Proposals for what the new housing estate might look like.

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Chinese developers in particular had dropped away from about half of all inquiries in 2016 to just 10 per cent today, he said.

However, Mr Malcomson noted the demand from locals was high enough that four more housing-estate sized blocks would hit the market within the month.

“Most of the sites will be hobby farms, as the larger properties no longer exist – the development sites that remain are quite a more fragmented and you have to put three or four together,” he said.

He noted the largest of the sites, which is yet to be listed, would span about 50ha.

Industry sources indicated at that size it could be worth about $110m.

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