Corporate News

 

But complex planning rules, rising costs and an uncertain economic environment are just some of the challenges hindering current and future progress, according to a top local developer.

The Geelong Advertiser has compiled the region’s most influential developers in a powerful list.

Originally from Bendigo, executive director of Villawood Properties’ Rory Costelloe has lived in Geelong for more than two decades.

Villawood began purchasing lots in Armstrong Creek in 2006 and would go on to purchase a 3000 lot subdivision, inspired by their developments in Marriott Waters and Point Cook.

“Once you get to know a place geographically, then you get to know the property geographically and you take interest in being a developer as well,” Mr Costelloe said.

“We brought an entirely new standard – we were used as the benchmark from the very start.

“We have lifted the bar, or set the bar, for everybody.”

Construction of Villawood’s Armstrong estate at Mt Duneed commenced in 2012, with construction of the estate delivering an end value of about $1.5bn, according to Mr Costelloe.

However, he said complex planning rules were hindering development applications.

“In the old days it used to take two years to get rezoned, now it takes seven years,” he said.

“Supply equals demand.

“Everybody talks about affordability, if you have supply that equals demand, and if you have competition, that creates affordability.

“The planning system is so constricted, it takes so long to get these growth corridors up and running through the planning stage, that we have little supply, and then have just pushed prices up.”

Mr Costelloe said the economic climate, notably interest rates rises which have increased regularly since May 2022, going up 13 times in 15 months, was challenging both buyers and developers.

He also described risk management as a major challenge for the developers.

“Nobody can make a decision anymore, everybody just worries about the risk, it is just a very, very bureaucratic world,” he said.

Ranked: Who are the regions most powerful developers?

 

1. Rory Costelloe – Villawood Properties executive director

Villawood Properties is responsible for the 3000 lot project, Armstrong in Mt Duneed.

Villawood Properties’ executive director Rory Costelloe said an ever-increasing number of people want to call Geelong home and managing that growth must be a top priority for city leaders.

Construction at Armstrong began in 2012 with a yield of 3000 plus lots.

Overall, Villawood properties is expected to deliver over 11,000 homesites in the Geelong region once the estate is completed.

Mr Costelloe said Villawood had about $3bn worth of value to deliver in Geelong over the next 20 years.

“The current growth corridor in Armstrong Creek will be sold out in the next two to three years, (so) we’ve got to be ready for that next growth corridor, I think that’s a critical situation,” he said.

“It’s just the lifestyle (drawing people to Geelong), it’s such a great place … it’s a phenomenal place to live and bring up a family.”

 

To view the full article published in the Geelong Advertiser by Satria Dyer-Darmawan and Peter Farago 22nd May 2024 – FULL ARTICLE HERE