Commercial demand on coast paying dividends for 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 today when a 102sq m shop at 2/81 The Parade is offered at auction at 1.30pm.

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

Mr Wilson said the low $900,000 price expectations would offer a yield in excess of 5 per cent on purchase.

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

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 per cent yield.

Mr Wilson said 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,” Mr Wilson said.

“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 said. 81 The Parade, Ocean Grove