Development/DA advice

Hi all,

I have an IP in Brisbane south side, on 607m2, zoned LMR 2/3 (mixed two-three storey).

The next door block is an identical size, and I've just found out DA is all but approved to put 7x 2 bedroom units.

I know that this block sold to the developer for bang on $1000/m2, and a couple of months ago I declined a cash unconditional offer of $944/m2.

I'm uncertain what to do and have lots of questions, I don't know the answers.

1) As a negative, these units will definitely decrease the privacy of the existing house on one side, however the positive is that the modern style units are replacing a fairly derelict post war house. Any thoughts on how this might effect the value of my property (for rent, or to sell) as it stands as a HOUSE, in broad terms? I consider the houses sidled next to boutique apartments in other gentrified areas, and they are hardly a poor cousin.

2) Now I know what is possible, is anyone clever enough to work backwards, as to what might be a reasonable maximum selling price for me - Does the $1000/m2 sound like top dollar?

3) Any idea what it might cost if I showed up to the same architect and asked him to essentially replicate the work except on my block, with the view to applying for DA? Or a ballpark figure from any architect/town planner to go through this process?

4) What might I expect the DA to add in terms of possible selling price? Is it worth doing?

5) My strategy is largely long term buy and hold, I guess I've gotten lucky with this zone change and changing area. Rather than develop it myself (I don't have the skills or the funds), I'm hoping the land continues to increase in its desirability as the supply of the existing LMR blocks dwindle. Any comments? Would this change what you do?
 
What street frontage do you have? 17 meters approx?
7x2 on that block seems like these units will be very small.
Is there anything else in your street or close by that has had 7 units built recently?
 
What street frontage do you have? 17 meters approx?
7x2 on that block seems like these units will be very small.
Is there anything else in your street or close by that has had 7 units built recently?


15m, same as the development block

607m2, I think the development covers near 50% of the site, so yes, fairly small. Carpark basement, two ground floor, two first floor, one third floor.

There has only been one development on our side of the street (where it switches from MR to LMR2/3). I'm not sure of unit numbers, but it is 3 storey as well

My concern with the house is that the roller door, and the ground floor unit balcony is right outside the main bedroom window. And being an old QLDer, there is nothing sound proofed about the window.
 
Hi all,

I have an IP in Brisbane south side, on 607m2, zoned LMR 2/3 (mixed two-three storey).

The next door block is an identical size, and I've just found out DA is all but approved to put 7x 2 bedroom units.

I know that this block sold to the developer for bang on $1000/m2, and a couple of months ago I declined a cash unconditional offer of $944/m2.

I'm uncertain what to do and have lots of questions, I don't know the answers.

1) As a negative, these units will definitely decrease the privacy of the existing house on one side, however the positive is that the modern style units are replacing a fairly derelict post war house. Any thoughts on how this might effect the value of my property (for rent, or to sell) as it stands as a HOUSE, in broad terms? I consider the houses sidled next to boutique apartments in other gentrified areas, and they are hardly a poor cousin.

2) Now I know what is possible, is anyone clever enough to work backwards, as to what might be a reasonable maximum selling price for me - Does the $1000/m2 sound like top dollar?

3) Any idea what it might cost if I showed up to the same architect and asked him to essentially replicate the work except on my block, with the view to applying for DA? Or a ballpark figure from any architect/town planner to go through this process?

4) What might I expect the DA to add in terms of possible selling price? Is it worth doing?

5) My strategy is largely long term buy and hold, I guess I've gotten lucky with this zone change and changing area. Rather than develop it myself (I don't have the skills or the funds), I'm hoping the land continues to increase in its desirability as the supply of the existing LMR blocks dwindle. Any comments? Would this change what you do?

1. when it comes to residual houses in an area zoned for higher densities, if you can't beat em, best to join them

2. yes of course it's possible to work backwards, how do you think the developer got to the offer price in the first place? Work out your gross realisation (total price of units sold), take away all you costs, (developer's contribution, interest over borrowings, contruction costs, agent fees etc). take away your profit margin, bingo, there's your offer price for the land!

3. how long is a piece of string? if you run into problems the costs for these consultants will be more. The good thing is you aint paying interest on holding the land

4. Refer to answer 2 - the best benefit the DA has is it takes away time and uncertainty, less risk, and less holding costs for interest over the land purchse...how much is it worth? who knows? to a competent and experienced developer, probably nothing- he would rather his own design, for a newb prob a bit more

5. Do you think the price of the end product (units) will grow?, if so, there's no reason why the land price wont grow too
 
Interestingly, I tried to contact the developer before he got going, I would have struck a deal and he could have built 20.
 
Hi Bran. Feel free to PM me about this one. I am the town planner who is currently getting town planning approval for the 7 units next door (and we also designed them). I wouldn't say it is all but approved but at this stage Council looks to be supportive of the additional density that we are seeking. The units are actually of a pretty reasonable size. Internal GFA: 5 x approx. 75sqm, 1 x 90sqm and 1 x 100sqm unit (excluding balconies). We are pushing an extra storey than what is technically currently allowed but we believe this is justified given the slope of the site and the transition with the nearby MDR land.

To answer your questions:

1) Although I may be a bit biased, I would think that the development next door would be a good thing for your property. Although, there may be some amenity impacts in the short term on the existing house, the highest and best use of your property is for units, so the more units the property next door can achieve, the more you could theoretically achieve on your site, which is where the value of your property lies.
2) As my03 mentioned, you just need to work backwards to work out what 7 units on the site is worth. FYI, we have a number of developer clients looking for similar properties so we may have someone interested in the project.
3) Yes, we could probably tell you pretty accurately what it will cost for the DA approval.
4) Generally, DA approval will add value for you if you are able to achieve a density higher than what is expected for the land. In this case, the DA next door has done a lot of the hard work for you in demonstrating to a developer that 7 units can be achieved on your site (assuming the 7 units are approved and assuming there are no additional issues with your site i.e. servicing etc).
5) FYI, although there has been recent rezonings in the area, your site has actually been zoned LMR (i.e. appropriate for units) for a long time (10+ years).

Cheers
Liam
AAD Design
 
Hi Bran. Feel free to PM me about this one. I am the town planner who is currently getting town planning approval for the 7 units next door (and we also designed them). I wouldn't say it is all but approved but at this stage Council looks to be supportive of the additional density that we are seeking. The units are actually of a pretty reasonable size. Internal GFA: 5 x approx. 75sqm, 1 x 90sqm and 1 x 100sqm unit (excluding balconies). We are pushing an extra storey than what is technically currently allowed but we believe this is justified given the slope of the site and the transition with the nearby MDR land.

To answer your questions:

1) Although I may be a bit biased, I would think that the development next door would be a good thing for your property. Although, there may be some amenity impacts in the short term on the existing house, the highest and best use of your property is for units, so the more units the property next door can achieve, the more you could theoretically achieve on your site, which is where the value of your property lies.
2) As my03 mentioned, you just need to work backwards to work out what 7 units on the site is worth. FYI, we have a number of developer clients looking for similar properties so we may have someone interested in the project.
3) Yes, we could probably tell you pretty accurately what it will cost for the DA approval.
4) Generally, DA approval will add value for you if you are able to achieve a density higher than what is expected for the land. In this case, the DA next door has done a lot of the hard work for you in demonstrating to a developer that 7 units can be achieved on your site (assuming the 7 units are approved and assuming there are no additional issues with your site i.e. servicing etc).
5) FYI, although there has been recent rezonings in the area, your site has actually been zoned LMR (i.e. appropriate for units) for a long time (10+ years).

Cheers
Liam
AAD Design



Great!

PM inbound.
 
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