Farm Near Avalon Airport to Fetch $5 Million

A farm abutting the Avalon Airport near Geelong is expected to reap its owner about $5 million, despite not being rezoned for immediate redevelopment.

The 141-hectare parcel of land - zoned Farming 1 but unlikely ever to be used as for farming purposes given its proximity to the airport - is likely to become one of the Geelong region's bigger industrial parks eventually.

DTZ director of capital markets Russell Hannan said the development site stretched from the western edge of Linfox Avalon Airport to Avalon Road, and had prominent frontage to Princes Highway. Though the site is about 20 kilometres further away from the CBD than is Dandenong - considered Melbourne's industrial capital - industrial land and rental values in Geelong are much lower. Mr Hannan said there were advantages for tenants, being on the same side of town as the Seaport and airport.

He said major industrial development around Melbourne Airport in Tullamarine was a hallmark of the last industrial building boom, and expected rising fuel costs to drive industrial users closer to ports, road and rail infrastructure.