Ex-public housing reaps nearly $9m in northern suburbs sell-off

First-time buyers and renovators were among the purchasers looking to reset the clock on these up to 70-year-old homes on big blocks in Geelong’s north.

The three-bedroom home at 13 Salvia St, Norlane sold for $370,000.

A first-home buyer was among the people to secure one of nearly a dozen ex-public housing properties sold in Geelong’s northern suburbs with plans to renovate.

The Norlane properties, which included a number of 1950s weatherboard houses and vacant blocks, each sold through auction or expression of interest campaigns that concluded prior to Easter.

Only one property, a vacant 1231sq m property in Iona St, behind Labuan Square that previously housed a block of units, was unable to find a buyer.

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The three-bedroom house at 13 Salvia St, Norlane sold to a first-home buyer for $370,000.

One Agency listing agent Mark Mitchell said other than the first-home buyer who paid $370,000 for a three-bedroom house at 13 Salvia St, the purchasers were renovators and developers.

The best result was $462,000 for a home at 9C Nerine Court, Norlane, where the three-bedroom house occupies a 935sq m block.

“They’re going renovate that and then lease it out,” Mr Mitchell said.

“A few blocks of land are more than likely going to be used as rooming homes.

Buyers who pushed the price for this two-bedroom house at 1C Nerine Court, Norlane, to $462,000 plan to renovate.

The two-bedroom house at 5 Finch St, Norlane, sold for $367,000 in March.

Mr Mitchell said the low purchase prices meant ex-public housing stock was attractive for renovators.

He said buyers could end up with a renovated house on a big suburban block for less than $460,000, if the landed one of these properties in Norlane.

“I think that’s the attractiveness of it. It would cost them more money to build something new and is only costing between $15,000 and $18,000 or so to knock them down, but a couple of 100 grand-plus to build something.

“They’re paying per home on average $370,000 across the board. I’d say they’ll be adding $18,000 to $20,000 in stamp duty, so we’re still well under $400,000.

“And then if they spend $30,000 to $60,000 (to renovate) they still have a really good buy and they’ve got potential to be something higher down the track as there is potential growth.”

The renovated three-bedroom house at 3 Zinnia St, Norlane, sold for $492,888 in March and is now available for rent for $450 a week.

The three-bedroom house at 3 Zinnia St, Norlane, is available to rent for $450 a week. In sold for $493,000 in March.

Norlane’s median house price is $455,000, according to the latest PropTrack data, which owners claiming a rental yield above 4.5 per cent.

The median asking rent in Norlane is $398 a week with renovated original 1950s homes available between $380 and $450 a week.

Mr Mitchell said the beauty is the properties can be subdivided down the track also.

Homes Victoria has earned close to $9m through the sale of more than 20 ex-public housing properties across Norlane, Corio and North Geelong.

Hayden, Geelong agent Glenn Hardman handled the sale of 11 homes in March.

Mr Mitchell said the revenue generated for Homes Victoria is used to purchase new public housing stock.

Originally published as Ex-public housing reaps nearly $9m in northern suburbs sell-off