Commercial Zoning

Dear guys,

Have been looking at a property with an old colonial that should be knocked down. Block of land is 1200sm and very close to transport and shops.

However it is well over priced compared to similar properties. The only real difference is that it has "Commercial Zoning".

With this what are the real implications that this will have on the price/value of the property? Does it mean you can build that you can build a greater number of stories in a unit development or utilize more of the land?

Is it special or am I trying to read too much into this?

Appreciate the forums input on this.


Talk to Town Planning at the Council and find out what can be done in that zone. That will give a better idea of the potential value of the land.
Thanks Dionysus888.

Will give that a try.

In the meantime is there any general information/opinion on this zoning without talking direct to council?


Hi Sunstone,

After making similar enquiries to my local council about a property that was currently zoned commercial, they advised that commercial properties were zoned under a "plot - ratio" scheme and residential under the "r - codes". The requirements are different for the different types of use, eg commercial don't require a back yard but will require a bit more parking depending on the type of commercial use.

From my experience (not much), just call the council and ask to speak to the people in the planning section. They are usually quite helpfull.

Better still, talk to a developer who will be only too pleased to outline the value of the block and the possible uses to which it could be put.

Of course, temper the advice with the knowledge that they want you to enagage in a construction project with their company. A chat with a developer is not a substitute for due diligence - but it can certainly be an eye opener in terms of possibilities that you may not have considered.

Good luck.
Council Staff

I tend to agree with Jerry Maguire. Even if you do stumble across a helpful council customer service rep, I am somewhat wary about taking development advice from a pimply-faced 19yo.

Perhaps a more appropriate contact would be one of the registered twn-planners. They may also be able to provide some insight into plans for the immediate area, road changes, zoning changes, existing proposed developments, etc. Having a coffee with one of these folks can be an essential element in any due diligence exercise for a potential development.

The reason that commercially zoned properties often attract higher values than residentially zoned properties is because of the likley increased value by putting the property to its highest and best use which is a commercial development.
If you are not sure what you can put on the site, you will probably find it difficult to get a straight answer from the council town planner, but you will get a staright answer from a private town planner or an architect, but you may need to pay for their advice
Alternatively look at the council web site for planning regulations and zoning overlays. They may contain the information you require.