THE growing popularity and gentrification of the western suburb of Hamlyn Heights has underlined the potential of a key commercial property on Vines Road.
The commercial premises at shops 1 and 2/63 Vines Road sold recently for $1.07m.
The deal realised a 4.5 per cent yield for the seller.
Darcy Jarman, Geelong West agent Tim Darcy said gentrification in Herne Hill, Manifold Heights and Hamlyn Heights had supported the strong result.
The existing tenants had been in place since the shops, on a corner property, were built about eight years ago, Mr Darcy said.
“The rents are pretty modest, so there was a number of local investors that were pretty keen to buy it,” he said.
Vines Road is home to the popular Vallis IGA supermarket. Its owners are rebuilding after a fire at the opposite end of the shopping centre.
“It’s a good little vibrant area that is becoming more active as time evolves,” Mr Darcy said.
The local buyer was seeking a passive investment to add to their existing portfolio.
“It’s got a proven track record in the time it’s been in existence in an area that’s growing and thriving,” Mr Darcy said.
The transaction was completed in the first week of January.
Mr Darcy said the COVID- 19 pandemic had drawn a bigger focus on the region for commercial property investors.
“We’re very optimistic about the immediate to medium term future of Geelong in terms of activity,” he said. “I think that we’ve already been in a relatively strong growth cycle.
“This pandemic has heightened the activity around Geelong and the Bellarine Peninsula and Surf Coast.
“So we’re dealing with a lot of pent-up demand for a raft of different opportunities within the industrial and commercial sector with Geelong at the moment.”