Rare Beachside Encounter Bay Development Site Sells for $28.2 Million | JLL

International attention for a site in South Australia signals high demand from land lease community developers

A highly successful Expressions of Interest (EOI) campaign for a rare, undeveloped beachside site resulted in almost 200 enquiries from local, interstate and international prospective buyers.

The circa 33.3ha site at Lot 80 Waitpinga Road and Lot 503 Tabernacle, Encounter Bay had 10 bidders at the close of the five-week EOI campaign, which resulted in a $28.2 million sale to a company specialising in over 50s lifestyle living with an existing presence in the region.

The subdivision land holding is close to the beach with ocean views over Encounter Bay, multiple road frontages and is in one of South Australia’s fastest-growing regions.

The high volume of interest in the property has been attributed to an increase in residential demand in the region for traditional residential development as well as for land lease community sites, according to JLL’s Ben Parkinson and Jack O’Leary who managed the EOI sales process.

“This site was arguably one of the best remaining beachside development sites of this scale in the Victor Harbor region, so we anticipated the high enquiry rate and we’re very happy with the outcome we achieved for our vendors,” Mr Parkinson said.

“However, there were many who missed out on securing this land with a number of them also being land lease community developers.”

Mr O’Leary explained that land lease communities offer a unique model where residents own their homes but lease the land on which they sit — making homeownership more affordable and attractive for downsizers and retirees.

“People still want to own their home as they retire but they also want the amenity, lifestyle and community that goes with it without the cost and maintenance of traditional ownership, this is what land lease community model is all about,” Mr O’Leary said.

This demographics shift has fuelled demand from land lease community developers who are eager to secure prime land holdings such as this. 

“We have noticed a real desire for sites like this across the board, and this remarkable Encounter Bay site was perfectly positioned in a key lifestyle location just an 850-metre walk to the beach,” he said.