Kim Waters
The failure of Armstrong Creek’s first subdivision to deliver affordable housing has highlighted bargains just up the road in Geelong, according to real estate agents.
They trotted out a series of relatively new homes around 40 per cent, or $200,000, cheaper than the entry price for Armstrong Creek.
The Independent revealed last week that an absence of competition among developers and failed attempts to tap into Federal Government’s affordable housing fund would leave the first residents paying around $500,000 for a house and land.
Buxton Highton’s Jarrod Leonard said Armstrong Creek had shone the affordability spotlight on Belmont, Grovedale and Marshall.
“They’ve gone for a certain boutique option, which will work better for second and third-home buyers, but areas like Marshall and Belmont offer established homes close to schools, shops and public transport at affordable prices,” Mr Leonard said.
“The new subdivision will also need time to settle in and we won’t really be seeing the benefits for buyers until maybe 15 to 20 years down the track.
“Areas like Grovedale and Waurn Ponds are family-friendly, offer plenty of trees and parks and have very affordable homes.”
Mr Leonard predicted the capital growth of homes in Geelong’s existing suburbs would “far outweigh” Armstrong Creek.
“Belmont, Grovedale and Marshal are much more appealing,” he said.
“We see more and more people buying land in new subdivisions with the view to build and then end up selling because of difficulties and hassles associated with building.
“A lot of buyers these days aren’t in a financial position to be able to do that and would prefer an established home at a more-affordable price.”
North Geelong Real Estate’s Joe Grgic expected the “stress of demand” to send the cost of buying into Armstrong Creek beyond $500,000.
“There are a lot of first-home buyers who can’t afford that,” he said.
“The majority are looking for a home at $300,000 or below and there are great houses in established parts of Geelong for around that price.”
State Planning Minister Justin Madden has given the green light for the release of 500 allotments at Armstrong Creek’s Warralily estate, in the urban growth area’s east precinct.
Warralily developer Armstrong Creek Development Corporation plans to sell the first 50 lots through a ballot system this Saturday.
Warralily spokesperson Mark Whinfield said other precincts were “still working” through the planning process.
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