Muslim families buy up in Melton South housing development

A suburban Muslim estate is earmarked for Melbourne’s outer west with developers targeting Islamic families.

Iqra Village residential project in Melton South has been marketed towards South Asian migrants in what is believed to be Victoria’s largest faith-based planned housing development.

The vacant land has been subdivided into 75 lots just off Coburns Rd, a few kilometres from where right-wing extremists staged violent protests against Islamic migration. There are visions to build a mosque at the centre of the land.

Developer Amanar Rahman, one of four listed directors of Rahber Developments, said the $2.4 million parcel was carved up to buyers who wanted to live with other Muslims.

“They might want easy access to a mosque, an easy transition from where they live to where they pray,” he said.

“I felt being a Muslim and community minded, it was a gesture of goodwill and belonging.

“It’s basically a community project that we have done in a halal way.”

Melton Council planning general manager Peter Bean said council had issued permits for the medium-density housing proposal.

“There was no reference in the planning applications that the development was a faith-based community development,” Mr Bean said.

Islamic Council of Victoria general manager Nail Aykan said he believed the planned development was the first of its kind in Melbourne “at this scale”.

“It’s a great vision that we’re all neighbours, we all go into affordable housing and we do something that’s holy,” Mr Aykan said.

“It’s a bit like a one-stop shop.”

Homebuyers originally bought the subdivided lots under sharia law, which prohibits borrowing money where interest is payable, so the venture was financed by several investors.

But the harrowed project has also been mired in financial disputes, legal action and infighting.

The company was wound up earlier this month over a $400,000 debt to the Australian Taxation Office.

Mr Rahman conceded Rahber’s precarious financial position jeopardised plans for the mosque. Two separate Supreme Court cases launched by buyers disputing money owed have been settled and dismissed.

A similar Victorian Civil and Administrative Tribunal bid by two investors seeking damages over claims of being misled was also thrown out this month.

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