Fresh from its recent expansion into Queensland with the purchase of a 21-hectare site in Morayfield, diversified developer Oreana has added a further 720 lots to its pipeline, as it predicts a return of investor activity.

The developer-builder has secured a 29.5 hectare site spanning 390 lots at Talia in Rockbank with a Gross Realisation Value (GRV) of $140 million, a 30 hectare site with capacity for 276 lots at 160 Hobbs Road, Wyndham Vale with a GRV of $91.5m, a 20.48 hectare site at 290 Hobbs Road with capacity for 190 lots with a GRV of $65m and a site in Riverwalk in Werribee where it plans to deliver 58 townhomes.

Both Talia and Hobbs Road were purchased off market for an undisclosed sum with the intention to begin construction on the Rockbank project in early 2025 and the Wyndham Vale project in late 2026, subject to planning. Riverwalk was purchased from Development Victoria, with civils work expected to commence in mid 2025.

Oreana’s Managing Director Tony Sass said in addition to the acquisitions, Oreana was moving forward with the construction of hundreds of townhomes, driven by a resurgence of investor interest.

Oreana has a 400-strong pipeline of townhouses across Melbourne, representing $200 million GRV – all with permits approved and many already under construction.

“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,” he said.

“Investors are back in the market in Melbourne and they’re looking to capitalise on the projected shortfall in housing that our city and state is facing.

“More and more are seeing the opportunity that packaged townhouse product offers and recognise the long-term fundamentals are good in terms of population growth and demand.

“The confidence is back and we are forging ahead with the delivery of medium density housing in Melbourne’s growth areas.”

Mr Sass welcomed the Victorian Government’s tax reform that will reduce stamp duty for all purchasers of off-the-plan townhomes and apartments for 12 months.

“This tax reform is a meaningful step forward in driving greater confidence among purchasers, enabling the delivery of supply to tackle Melbourne’s affordability issue,” he said.

“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 77 townhomes we had already earmarked to commence construction on prior to the end of the year.”

Oreana is developing townhouses throughout Melbourne growth areas including Clyde North, Sunbury, Cranbourne and Lara where it has 77 permit-approved homes to commence construction before the end of the year.

It recently completed 45 townhomes in Thornhill Park, which it both developed and constructed and sold mostly to investors seeing demand for modern rental stock.

RPM National Managing Director of Project Marketing Luke Kelly confirmed a surge in interest by investors and predicted strong demand for townhouses throughout 2025 as interest rates drop and first homebuyers re-enter the market in larger numbers.

“There is no better time to buy medium density townhouses and investors are doing exactly that. Up to a third of the sales we are seeing right now are to investors,” Mr Kelly said.

“The rent for townhouse product is good and vacancy rates are low, providing a strong yield. Meanwhile, purchasers are buying at the bottom of the market and will experience good opportunity for capital growth over seven to 10 years.

“There are also three key buyer segments all primed for townhouse purchase, including the first homebuyer contingent who have seen interest rates eat away what they can borrow. This is seeing them target medium density townhouses in greater numbers. We anticipate greater demand here in 2025 as interest rates go down, providing more confidence.

“And then you overlay the downsizers or second and third homebuyers who want something smaller – this creates a good market for medium density product.”

With its own construction arm, Oreana said it hadn’t experienced a weakening in demand – thanks to a diversified model that was seeing medium density, early education and local retail centres continuing to move forward.

“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,” said Mr Sass.

“We’re also building extensive childcare centres and retail at a neighbourhood level, catering for the many residents moving into new communities who bought during the pandemic boom.”

Oreana has seven early education centres under construction as well as 19 retail projects spanning large-scale neighbourhood shopping centres through to fuel stations.

“The delivery of 300 medium density homes over the next 12 months is a drop in the ocean when we consider the number of properties required to cater for Melbourne’s growth,” said Mr Sass.

“There needs to be a range of interventions to get the Melbourne market fully back on track and provide confidence to purchasers. The development industry is challenged by a range of red tape and taxation issues that need addressing if we are to accommodate every person moving to Melbourne.”