Armstrong Creek development site could set suburb record

502-580 Boundary Rd, Armstrong Creek has been listed with permits for 443 new home lots. Price hopes are $40 million.
502-580 Boundary Rd, Armstrong Creek has been listed with permits for 443 new home lots. Price hopes are $40 million.

A group of West Australian investors hope to sell a shovel-ready Armstrong Creek housing development site for a suburb record price next month.

The 30.6ha property at 502-580 Boundary Rd was listed this week after the investors, through Armstrong Creek Pty Ltd, obtained planning permissions to create 443 new house lots in the suburb.

Price hopes for the site are around $40 million after the investors paid $3.7 million for the site in 2005.

Commercial Insights: Subscribe to receive the latest news and updates

Biggin & Scott Land agent Frank Nagle says it is the first shovel-ready land listed in the southern Geelong growth area that’s already home to thousands of new residents.

“The PSP (precinct structure plan) has been done, it’s serviceable, you can get on with it straight away,” Nagle says.

The property is a key site surrounded by other existing developments.

“It’s the hottest residential pocket in Australia.”

“Red23 research identified it as the most resilient pocket in Victoria, it doesn’t suffer the vagaries of the Melbourne land markets.”

The research firm’s December report showed Greater Geelong continued to thrive, recording a $6100 month-on-month median land price increase to $278,000, while Melbourne’s growth area land market tempered.

“I think Geelong has spent a lot of time, effort and money on employment, jobs and creating industry,” Nagle says.

And the other thing is if you can’t afford in Melbourne, you can afford in Armstrong Creek.”

Community, education and shopping facilities will be a key marketing point for the blocks.

Home sites range in size from 350sqm for cottage allotments to 600sqm for traditional allotments, but most are 400-500sqm.

The site is close to Warralily Village shopping centre and community precinct and opposite the site of a proposed secondary school.

Nagle anticipates local and listed land developers will be keen on the property, being offered in an expressions of interest campaign closing on March 20.

“It could be a medium-sized listed property developer like Villawood or a local identity in the area, like ID_Land, Warralily or Metricon,” he says.

“It wouldn’t surprise me if one of the adjoining developers purchases it.

The Village shopping centre at Warralily estate is close to the land on sale.

“At this price point it would be one of the major players in the area or one of the major players in the industry.”

CoreLogic data shows Armstrong Creek’s most expensive land sale was $24 million nearby on Barwon Head Rd in 2017, while a neighbouring farm sold for $12 million last year.

“We’ve not had one that has been offered at this planning status,” Nagle says.

The company’s directors are Perth mining executive Jon Stewart and Michael Price, the chief operating officer at Perth investment house Argonaut.

This article from the Geelong Advertiser originally appeared as “Prime housing land could sell for $40m as WA investors launch Armstrong Creek sale”.