Melbourne-based Oreana has secured four development sites capable of accommodating more than 900 homes.
The developer-builder said it made the move anticipating a return of investor activity ahead of expected interest rate cuts in 2025.
Investors were already returning to Melbourne’s property market in significant numbers, RPM national managing director of project marketing Luke Kelly said.
Kelly said investors now accounted for up to one-third of current sales and were targeting medium-density products with strong yields in areas with low vacancy rates.
“There is no better time to buy medium-density townhouses. Purchasers are buying at the bottom of the market and will experience good opportunity for capital growth over seven to 10 years,” Kelly said.
“The rent for townhouse product is good and vacancy rates are low, providing a strong yield.”
This has prompted Oreana to secure the four sites across Victorian growth corridors.
The largest acquisition is a 29.5ha site at Talia, Rockbank, with capacity for 390 lots and a gross realisation value (GRV) of $140 million.
The company also bought two sites at Hobbs Road, Wyndham Vale, a 30ha parcel at number 160 with capacity for 276 lots valued at $91.5 million, and a 20.48ha site at number 290 capable of delivering 190 lots with a $65-million end value.
A fourth site at Werribee, acquired from Development Victoria, will accommodate 58 townhouses.
Construction at Rockbank is scheduled to begin in early 2025, while the Wyndham Vale project is slated for late 2026, subject to planning approval.
The announcement follows Oreana’s recent expansion into Queensland with its purchase of a 21ha site at Morayfield.
Oreana managing director Tony Sass said, “We are buying land at good prices today, knowing that when the product hits the market, it will be launching in better conditions than now”.
The company was progressing with construction of hundreds of townhouses, driven by renewed investor interest, Sass said.
“There are green shoots appearing in the Melbourne market, which gives us the confidence to buy well and move forward on the delivery of supply.”
The developer already has pipeline of 400 townhouses across Melbourne worth $200-million GRV, all with approved permits.
Current projects include The Square Clyde development at Clyde North, as well as those at Sunbury, Cranbourne and Lara. Oreana has 77 homes scheduled to begin construction before year end.
Sass welcomed the Victorian Government’s stamp-duty reduction for off-the-plan townhouses and apartments, describing it as “a meaningful step forward in driving greater confidence among purchasers”.
“As a developer-builder delivering hundreds of townhomes in growth areas every year, this provides additional confidence to proceed with a range of projects in our pipeline, including the 77 townhomes we had already earmarked to commence construction on prior to the end of the year,” Sass said.
Beyond residential development, Oreana is expanding its commercial portfolio with seven early education centres under construction and 19 retail projects ranging from neighbourhood shopping centres to fuel stations.
Oreana’s $160-million development plan is already in the works and includes the $12.3-million Riverwalk Town Centre at Werribee, a 14,000sq m mixed-use development at 800 Derrimut Road, Tarneit, and a 10,000sq m precinct at Mickleham’s Botanical Estate.
Sass said the projects would provide essential amenities for the growing local populations in these areas.
“It’s crucial that new and expanding communities have the right foundations in place in order to be able to successfully flourish and this includes access to quality services and amenities.”
