Developers buying in 4:1 re zoning

[TerryJ]

Hi all,
New to this website and seeking some advice

I live in an area where the council is re zoning it to R4. Proposed density ( floor space ratio) of 4:1 and proposed height of 33m. Trying to gauge what my property is worth now that developers are continually knocking on the door?

I have done some research and have come up with the following. Please feel free to let me know if I'm on the right track, wrong, or anything that I have missed.

Are of my land is 501 sqm 4:1 ratio means I can get 4 x 500 =2000. Then divide by 100( the average sqm that is roughly required in a mix of 1,2 and 3 bedroom apartments) = 20 apartments can be built on my block alone.

Now what I need to know is what builders/ developers are willing to pay for those apartments? Is it approx $150k per apartment?? More? Less?
That would give me a a value of $3 million dollars for my property ( 20 apartments x $150k)

Now obviously they can buy just my block. They would look to buy 4-6 of them next to each other. Other properties are roughly the same size.

Am I on the right track here? Is this a fair price to ask? Does anyone know even if this formula is correct?

Any information by others who have been in this situation or by developers would be greatly appreciated.

Regards
Terry

 

[Scott No Mates]

They cannot buy your block in isolation to build 4:1, they will need to buy several in order to meet the DCP requirements for setbacks, circulation space, parking etc as a 3-4.5 m set back down both sides wouldn't leave you much space to build.

Your current block is worth x as a single housing block (probably with 0.5:1 FSR), the new zoning is an 8x increase in the density but that doesn't mean an eightfold increase in value. It would probably pay to get a bloc of neighbouring owners (sides and behind) to approach an independent valuer (not an agent) as the agents will come sniffing so will the developers scouts. So get in early to establish what it's worth (this will be based on $Y/unit yield - this won't vary much if your house is new/has a pool/new curtains or full of fibro). Once you know what it is worth, start talking to a few agents to get consenus on one to represent several owners.