Written by Lachie Young, Geelong Advertiser – Real Estate
In the past six months several Melbourne Road properties have hit the market with varying degrees of success.
Last October, Gartland Real Estate sold a vacant 5.37ha site at number 343-363 for an undisclosed figure (believed to be in excess of $2 million), while in February, Melbourne-based agency Burgess Rawson sold number 324-326 for $4.1 million. Then, two weeks ago, 340-344 Melbourne Rd passed in at auction with the same agency.
With an increase in activity in a particular area, it begs the question as to whether there is a reason these properties have come on to the market so close to one another.
The short answer from those involved in the sales is despite the advent of the Ring Rd, Melbourne Rd remains one of Geelong’s most heavily used thoroughfares.
Burgess Rawson director Jamie Perlinger, who along with Scott Meighan has just listed 470 Melbourne Rd — home of Repco Auto Centre — to go to auction on June 24, believes the location of recently sold properties has contributed greatly to their success.
“This one here is an absolute belter of a spot, there’s a brand new Bunnings being built right beside it, there’s a good tenant with a good long-term lease, and it ticks all the boxes for a good, passive investment,” Mr Perlinger said. “You’re talking 3600sq m (of space) and a couple of street frontages as well, so it’s a good size. “But the underlying thing here is it’s good real estate. You look at Bunnings, they’ve done all the research, they know the residential growth there and they don’t get it wrong too often.”
Director at Darcy Jarman, Tim Darcy, echoed Mr Perlinger’s comments, saying figures showed the Melbourne Rd was still experiencing high volumes of traffic. “The traffic count on Melbourne Rd is still very, very high. It’s still the major thoroughfare into our city centre from the north,” Mr Darcy said. “A lot of the ring road traffic is passing traffic, where it’s heading down to the coast and not coming into Geelong anyway.
Mr Darcy has just listed 191-193 Melbourne Rd, an investment property leased to Metricon that is returning $217,360 per annum and expected to yield between 7 and 7.5 per cent.
“There is nothing of a sinister nature in regards to why, certainly in regards to this particular property. It’s more about the circumstances of our vendor that has created an opportunity,” Mr Darcy said. “We’re expecting it to sell in the yield range of around 7 to 7.5 per cent so that equates to $2.85 to $3.1 million.
And while inquiries for both investment properties have been strong since being advertised, Mr Perlinger added that as much as the appeal would stretch far and wide, there were still local buyers keen to stay involved in their own market.
“There is Melbourne and New South Wales interest in these assets, but there’s also a strong local presence,” he said. “There’s still a lot of local money that’s looking for good, passive real estate.”