Returns swell for Ocean Grove investors

Investment opportunities in Ocean Grove are providing a bigger return to buyers as demand for quality office and retail accommodation rises.

The latest occurs is a 102sqm shop at 2/81 The Parade, which is on the market for $895,000 after it passed in at auction last Wednesday for $875,000.

Wilsons, Geelong agent James Wilson said the shop is part of a mixed use development near the main shops.

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Wilson says the price expectations will offer a return on purchase of about 5.5%.

“We’ve had some genuinely interested parties, which we have spoken to post-auction,” Wilson says.

Positioned fronting the main Ocean Grove car park, the shop has a secure tenant paying $48,960 a year.

The shop is positioned close to everything, on The Parade in Ocean Grove.

Wilsons is also marketing first-floor office accommodation in the building, which has a combined rental return of $53,500. Price expectations are $899,000 and a 6% yield.

Wilson says the development recognised a demand for better accommodation near The Terrace.

“There is a solid residential component as well with four townhouses at the back and two penthouses at the top,” Wilson says.

“I think it’s indicative of the expansion of the area, not just the central component of Ocean Grove, and further demonstrates it’s not a transient population as it used to be.

“It supports a more permanent population and the desire of people who work out of Melbourne who want more of a coastal base that’s outside of Geelong as well,” he says.

This article from the Geelong Advertiser originally appeared as “Commercial demand on coast paying dividends for investors”.