That's my concern too. There is already discounting in this segment... in this market! I am concerned in the market softens this segment will be hit hard.
Dev block in Belmont Perth - pls check my figures and tell me if I am mad or not.
- Thread starter Tulamalula
- Start date
That's my concern too. There is already discounting in this segment... in this market! I am concerned in the market softens this segment will be hit hard.
Hence my thought there would be a market for houses on larger blocks close to the city.
I stopped looking at East Perth, way too much going on there, way too many boxes of people and too many developments planned. Saw this happen in South Brisbane, crazy developments.
I stopped looking at East Perth, way too much going on there, way too many boxes of people and too many developments planned. Saw this happen in South Brisbane, crazy developments.
I can see this being the case. There is that many blocks being bought for multis and going in for da, that in the next 2-3 years will be alot of stock coming onto the market.
This may not be a problem if there is sufficient demand. But is there ?
Directions 2031 shows and proves that we need infill in areas around the city. City of belmont were very proactive in their rezoning in order to allow this. But I dont think their vision was for apartments everywhere which the changes in the r-codes and for the plot ratios to be used to build apartments on as little as r30 started this process .
I would not be suprised if belmont try to go down the same path as city of stirling.
There will always be people that want to live on big blocks of land and people that want to live in apartments close to everything.
So your idea of buying on a big block maybe a good idea. It may even suit a granny flat in future for more income.
But obviously what you buy will depend on the area and area demographics
Cheers
The residential block apartments are an experiment with an unknown outcome. Who knows if Belmont is happy about this or not? I know they have been pushing demo and med-density builds on corner blocks for ages. Looking at the built form outcome... some of them are pretty nice! It's early days for the resi apartments but some have been completed. From the street they present very much as residential dwellings, not at all like the cheap 60's block of flats that people usually associate with higher density development. The City was fairly rigorous with selecting the densities so I am pretty sure they will keep them. Although if Belmont and Kalamunda amalgamate, who knows what will happen?
What do you think about an established hour and land in Belmont or Cloverdale or a non-flight path area of Redcliffe, on a large block but not development potential - simply for having a large block for people in 20 years who may still want a back yard and possibly a pool under 10 k from the city, would there be a market for that in the future when these areas are all chopped up and built upon?
I think there will be a market for what you describe. Or it will be too expensive for a family to buy and a developer will snap it up I guess. Either way, it's hard to imagine a scenario where such a produce, within 10km of the CBD is worth less than it cost now in 20 years time.
I'm going to see one this afternoon, it's 2 bedroom and sunroom on 850sqm - needs a reno, new kitchen bathroom, paint job. Could rent as is for around $350 week. It's on for $539K which is a bit steep as the one next door which is 3 bed and has a new kitchen recently sold for $525.
I hope you like painting!
Have you thought about a house and land package... maybe something like this?
http://www.realestate.com.au/property-house-wa-kewdale-115857627
It's not a recommendation because I don't know anything about them. They are probably development for dummies type deals and I will get yelled at for even mentioning it... lol
Ick, on tiny blocks, and those new things are all so much the same.
I used to like painting, done a lot of it in my time, but no more, have a really good well priced painter who just did the outside of our place for $8K when everyone else quoted $12-$20K.
This is the one i may look at this afternoon ... lack of real third bedroom concerns me, and it's super shabby and overpriced. Anyway, it's just down the road and I'm in the looking at properties but not ready to buy phase, I like real estate, even just to look at.
http://www.realestate.com.au/property-house-wa-belmont-115881707
But in a totally different area there's this one: $50K less
http://www.realestate.com.au/property-house-wa-swan+view-115582631
also in proposed City of Swan rezoning as R40
and this one on 685 proposed zoning R35
http://www.realestate.com.au/property-house-wa-swan+view-115356315
I even love online real estate window shopping, spend too much time on RE.com.au
I used to like painting, done a lot of it in my time, but no more, have a really good well priced painter who just did the outside of our place for $8K when everyone else quoted $12-$20K.
This is the one i may look at this afternoon ... lack of real third bedroom concerns me, and it's super shabby and overpriced. Anyway, it's just down the road and I'm in the looking at properties but not ready to buy phase, I like real estate, even just to look at.
http://www.realestate.com.au/property-house-wa-belmont-115881707
But in a totally different area there's this one: $50K less
http://www.realestate.com.au/property-house-wa-swan+view-115582631
also in proposed City of Swan rezoning as R40
and this one on 685 proposed zoning R35
http://www.realestate.com.au/property-house-wa-swan+view-115356315
I even love online real estate window shopping, spend too much time on RE.com.au
I forgot to mention in City of Belmont to look out for the ANEF contours. The State Government has a policy about the max density in each contour. For example, if the ANEF is 25-30 the max density might be R20, so you can't rely on a rezoning in that case. I am just using this as an example - it's not true because I don't remember what the numbers are. Just something you need to be aware of. From memory, it was this:
http://www.planning.wa.gov.au/publications/6429.asp
Yes, aware of them for sure, been sitting in the streets listening to planes go by, terrible down by Leach Highway!
It's interesting to see the development sites come back a little bit. A few months ago this would have been sold well above the $700k figure.
To compare I purchased this site in late 2011 in anticipation of the Belmont re-zoning:
http://www.realestate.com.au/property-house-wa-cloverdale-407343613
Purchase price was: $379,000
Lots of growth in the area attributed to Multi-Dwelling development. I don't see too much further upside in the market as the end product is now over supplied.
In terms of this site, I wouldn't consider the R100 zoning unless you gain an adjoining block, but both are developed so that's not an option. Defaulting back to the R50 zoning results in five 2 bed and 2 bath apartments. This works out to being a land component cost per apartment of $140k.
I can't see the value at this price as there are other areas offering the same price or slightly higher in a superior location. An example I purchased about 6 months ago is: http://www.realestate.com.au/property-house-wa-maylands-111214055
We are currently developing the site into nine 2 bed / 2 bath apartments - plans in with council for DA approval.
The purchase price worked out to about $92k land cost per dwelling with another $20k ($112k total) on for site works. This still works out cheaper than Belmont and offers a higher end sale value.
To compare I purchased this site in late 2011 in anticipation of the Belmont re-zoning:
http://www.realestate.com.au/property-house-wa-cloverdale-407343613
Purchase price was: $379,000
Lots of growth in the area attributed to Multi-Dwelling development. I don't see too much further upside in the market as the end product is now over supplied.
In terms of this site, I wouldn't consider the R100 zoning unless you gain an adjoining block, but both are developed so that's not an option. Defaulting back to the R50 zoning results in five 2 bed and 2 bath apartments. This works out to being a land component cost per apartment of $140k.
I can't see the value at this price as there are other areas offering the same price or slightly higher in a superior location. An example I purchased about 6 months ago is: http://www.realestate.com.au/property-house-wa-maylands-111214055
We are currently developing the site into nine 2 bed / 2 bath apartments - plans in with council for DA approval.
The purchase price worked out to about $92k land cost per dwelling with another $20k ($112k total) on for site works. This still works out cheaper than Belmont and offers a higher end sale value.
Hi Kent, What is the approximate cost for building a 2x2 apartments? (and size of apartments). I am assuming of double story with apartment A on bottom and apartment B on top?
Thanks.
It varies and depends on your inclusions but as a very rough number: $175k-$185k 2 bed 2 bath.
If you're looking at under croft parking (garages), strange sites, higher spec this will add cost.
Also, don't forget costs to get you to construction such as designer, planning, surveying etc...
If you're looking at under croft parking (garages), strange sites, higher spec this will add cost.
Also, don't forget costs to get you to construction such as designer, planning, surveying etc...
So boat has well and truly set sail in that area
Thanks. Good to know for future costings.
Sounds like a 2x2 apartment is about the same cost as a 3x2 unit.
Another one has just listed. I don't mind the three to the west but to the east... townhouse city!
http://reiwa.com.au/Buy/Pages/More-...1&listingid=10422095&listingno=3423896&puid=0
http://reiwa.com.au/Buy/Pages/More-...1&listingid=10422095&listingno=3423896&puid=0
Kent, you're getting 9 units on 20 Mt Prospect Tce? Wow - what is it zoned? I assume you're destroying the lovely character home on the block?
#14 is on the market, $875K marketed to retain and build 2 - way too expensive.
#14 is on the market, $875K marketed to retain and build 2 - way too expensive.
"destroying the lovely character home on the block" - ive been in this property twice as i was considering buying it too. it was an ok older home, certainly nothing worth retention
that was sarcasm Sanj
Looks like Midland is doing a Belmont with prices of dev blocks
http://www.realestate.com.au/property-residential+land-wa-midland-200775663
Looks like Midland is doing a Belmont with prices of dev blocks
http://www.realestate.com.au/property-residential+land-wa-midland-200775663
