This article is from the Australian Property Journal archive
DEVELOPER Cedar Woods has quietly picked up an 18.6-hectare site near Geelong where it plans to deliver 400 new homes and parklands.
The ASX-listed developer acquired the Plantation Road property in Corio off-market for $34.9 million, with the deal expected to settle in a year’s time and the project to contribute to earnings by FY27.
Cedar Woods’ managing director, Nathan Blackburne, said the Geelong market has been “subdued” more recently, and this acquisition is a countercyclical, strategic opportunity.
“The Geelong housing market is forecast to enter a period of undersupply with a significant housing shortfall predicted. We are capitalising on the opportunity now to ensure we are ready to respond with affordable land supply, in a sub sector that is tipped to outperform in Victoria when it recovers,” he said.
“In the interim, we will progress planning approvals to ensure the project is market ready when this occurs”.
Geelong saw a population boom during COVID, and over the longer-term is forecast to see strong population growth to go with growing investments in projects in the CBD, the completion of the GMHBA Stadium expansion, and the relocation of the Spirit of Tasmania terminal.
The majority of the development is expected to comprise single storey three- and four-bedroom homes aimed at younger families and those looking to enter the market at a more affordable price point.
The general residential-zoned site is one of the largest undeveloped parcels of land within Corio, situated less than 10 kilometres from the centre of Geelong, close to the Princes Highway and Avalon Airport.
“With our strong balance sheet, Cedar Woods remains well positioned to continue our strategy of diversification, strengthening our portfolio with quality product that can provide supply into a housing market where projected supply shortfalls are significant,” Blackburne said.
Cedar Woods reported a strong start to FY25, chalking up a 12% year-on-year increase in presales at the end of the Q1. It has 40 projects across Western Australia, Victoria, Queensland and South Australia and a pipeline of 10,000 lots.
It will release its half-year results on February 19th.
