Stockland Puts Foot on New Land Lease Community

Stockland has bought up a 26-hectare site east of Geelong for a new masterplanned land lease community.

The developer will submit plans for about 325 land lease homes and a further 100 residential homes for the site at 32-70 McDermott Road at Curlewis, which it acquired at the end of April for an undisclosed sum.

Stockland’s Halcyon Communities executive general manager Richard Rhydderch said there was strong demand from buyers looking for coastal lifestyle in the greater Geelong region.

“The Bellarine market has enjoyed substantial price growth as more people see it as an alternative to Melbourne,” Rhydderch said.

“This acquisition gives Stockland a unique opportunity to add to our pipeline of 9,000 LLC sites across Australia and build on our current exposure in the Greater Geelong and Bellarine Peninsula market.”

The Stockland Halcyon Communities model allows customers to purchase their new home outright with no entry or exit fees and pay a site rental fee, which covers council rates and includes access to community facilities.

Rhydderch said there had been significant infrastructure spending across the region including a proposed new ferry terminal, road upgrades and the Geelong Convention and Exhibition Centre.

“Curlewis offers the perfect mix for lifestyle-seeking retirees. The proposed masterplan will include a clubhouse and recreational facilities set in attractive landscaping complementary to the coastal and rural character of the precinct.

“The proposed community will have access to established services, including a nearby shopping centre, and a mix of recreational and sporting activities. Geelong’s city centre and local beaches are nearby.”

The Geelong growth corridor sales activity is now 45 per cent below its peak in the second quarter of 2021 as constrained land supply bites into the market and demand remains high.

RPM’s latest greenfield market data is showing the first signs of cooling in the Victorian land market to a more normalised pre-Covid level. 

In total, there was a 29 per cent year-on-year decrease in vacant lot sales from 6,793 in the first quarter of 2021, to 5,285 in 2022. Although this demonstrates a reduction in consumer demand, it is still at a level above historical lot sales levels, which have averaged around 1500 per month.

RPM managing director of project marketing Luke Kelly said the market was starting to experience more of the “traditional headwinds”. 

“It’s especially important to consider factors such as rising interest rates and inflation, continued global supply chain challenges, local labour shortages and an upcoming federal election, which are all set to play out on buyer sentiment,” Kelly said.

“Despite this, it’s promising to see that sales remain above historical average levels and record low median lot sizes are driving innovative new home design on smaller blocks, leading to a surge in townhouse builds across Melbourne’s major growth corridors.

“An important indicator for the greenfield market is also the sustained median price growth of Melbourne’s established housing market. If this continues, this places the greenfield sector in goodstead to demonstrate further resilience thanks to its persistent affordability advantage.”

Stockland recently unveiled plans for a $201-million community in Tarneit.

Stockland Wattle Park will comprise more than 500 lots across the 84ha site 33km west of Melbourne. Stockland paid $82 million for the Sewells Road site in mid-2021.