Wollongong Gem: Family-Owned Flats Present Rare Development Opportunity
A prized Wollongong property, held within the same family for over four decades, is set to enter the market, offering a unique blend of established income and significant future development potential. The block of flats, situated at 2 Street, Wollongong, is a substantial 813 square metre parcel of land that currently comprises four two-bedroom units and a spacious three-bedroom penthouse.
The genesis of this property dates back to 1980-1981 when Ron Ring, a respected figure in Illawarra cricket and a dedicated teacher, along with his wife Daphne, embarked on building the block. Ron Ring, who was the late chairman of the Wollongong Wolves, invested his entire superannuation into the ambitious project. Prior to the construction of the units, the Rings owned and operated a guesthouse on the site known as ‘The Ranch,’ a place that holds fond childhood memories for their son, Steve, who recalls the task of mowing its expansive lawns.
Steve Ring, a co-owner of the property, shared that the units have consistently provided a steady stream of income for the family throughout the years. His parents, Ron and Daphne, even resided in the top-floor penthouse, making the block not just an investment but a cherished family home. Steve himself was involved in the construction and upkeep of the units, working as a labourer between completing high school and commencing university.
Tragically, Ron Ring passed away in 2003, followed by Daphne four years ago. The property is now jointly owned by Steve and his sister, Judy, both of whom live outside the Wollongong area. While a strong emotional connection to the property remains, Steve acknowledges that it is currently under-utilised, particularly as the top unit is not presently being rented out.
“It’s time to sell,” Steve stated, reflecting on the decision to list the property. “We don’t get up there very often. We thought we’d see what sort of interest is out there – but there’s no pressure to sell. We also thought it may have been a good time, especially with the change in density rules.” He sees the sale as an opportunity to contribute to the much-needed increase in housing availability for the local community.
A Developers’ Dream: Unlocking Potential with Planning Changes
The true allure of this Wollongong listing lies in its strategic location within the Transport Oriented Development (TOD) precinct. Recent amendments to NSW planning regulations, specifically designed to encourage development around key train stations, have significantly amplified the site’s potential. This initiative, championed by the NSW Government, has already seen approvals for 10-storey apartment buildings in areas like North Wollongong.
The North Wollongong TOD precinct, in which this property is situated, is clearly defined by its boundaries: the Princes Highway and Flinders Street to the west, Gipps Street to the south, Kembla Street to the east, and Blackett Street and Pleasant Avenue to the north. Steve Ring confirmed that the favourable changes brought about by the TOD policy were a key factor in their decision to put the property on the market.
While the existing units are described as needing “a little TLC, a bit of a refresh,” the prevailing sentiment is that a knockdown-and-rebuild approach would likely represent the most advantageous path forward for a prospective purchaser. The site’s zoning and location strongly suggest a future of increased density and modern residential living.
Expressions of Interest Open for a Prime Development Site
The property is currently being offered for sale via Expressions of Interest, with the closing date set for April. Simon Kersten from Colliers Wollongong, who is co-selling the property, highlighted its dual value proposition. “The site has value as both a block of flats with existing income, and as a prime development site,” he commented.
Taleah Thomas, also a co-selling agent from Colliers Wollongong, indicated that a specific price guide has not yet been released. However, she provided an exciting projection: under the current TOD regulations, it is estimated that up to 29 residential units could potentially be constructed on the site. This figure underscores the substantial development upside for astute investors and developers.
For context, the median unit value in Wollongong currently stands at $812,307, according to data from Cotality. The existing four units are presently tenanted, and once the penthouse is also leased, the fully tenanted income is projected to exceed $150,000 per annum. Ms. Thomas also pointed out that further income enhancement is possible through strategic refurbishments of the current dwellings.
This offering represents a rare chance to acquire a well-located property with a rich family history, coupled with the exciting prospect of capitalising on Wollongong’s evolving urban landscape and supportive planning framework. The combination of established rental income and significant development potential makes this a compelling opportunity for a wide range of buyers.
