Chinese-backed developer makes mammoth Geelong land grab

A Melbourne company backed by Chinese capital has paid $25 million for a farm capable of being turned into 909 house blocks to Lara’s west.

Soaraway Development, which is a local division of China’s Yucai Group, purchased the 79.59ha property at 285 Patullos Rd, Lara, recently.

Geelong West agency Darcy Jarman, sold the property in conjunction with Melbourne firm, Gross Waddell.

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The key to the property’s prospects is that Geelong’s council has completed its structure planning for the 389ha Lara West growth area that will eventually house 11,600 residents.

The expressions of interest campaign attracted more than 100 bids from local, national and offshore buyers.

Darcy Jarman agent, Tim Darcy says it is the group’s first foray into Geelong, though not the first Chinese-backed investment in the region.

ICD Property is developing the Gen Fyansford project to the city’s west.

Darcy says the purchase shows confidence in the region, based on forecast population growth and proximity to Melbourne.

The property is close to existing Lara developments.

He says many developers no longer consider Geelong a regional market.

“They’re now looking for the next frontiers and we’re perceived by those within the sector as a metro suburb of Melbourne,” he says.

“There’s starting to be a significant paradigm shift in terms of Geelong now being considered almost metro within the eyes the property sector.”

Gross Waddell agent Andrew Thorburn says the land is a key corner of the Lara West corridor.

“There was a number of local developers looking at it but they weren’t able to step up to the level which was going to be acceptable to the owners.”

The sale represented a land rate of $314,000 per hectare, comparable to up to $500,000 a hectare or even $1 million a hectare in Melbourne’s northern growth corridor.

“It’s very much aimed at the first-home buyer market, with tangible links to the first-home buyers grant it should have great demand for house and land packages.”

The sale comes after local firms L Bisinella Developments and Costa Property Group paid $11 million for a 48.6ha parcel at 385 Windermere Rd, Lara in 2015. That property can be turned into 510 lots.

This article from The Geelong Advertiser was originally published as “China-backed buyers grab Lara west land in massive deal”.