On the flip side:
It could mean that those streets or blocks have been rezoned - and yours may not have been or may have been
It could mean a councillor owns some land and has had it rezoned for his/her own purposes.
It could mean a corrupt town planner has approved something for some under the table dealings - ala Wollongong council that was sacked recently.
It could mean that those streets have special significance for the area in terms of providing high density living within a certain radius of, say, a University. So this has no impact on the surrounding streets at all.
Lots of possibilities.
I would think that generally, if none of Prop's other situations are true , then it should be positive. It could signify developers moving into an area. The new townhouses will probably sell about the same price as a full block. Theoretically, as this happens it makes the remaining development blocks worth more as the price of the land increases.
The thing is that as this continues, this land is probably more valuable to developers than OOs, as a streetscape full of units may not be as attractive a propostion as a street full of houses to live in. Which is why i have just bought a PPOR in an area under a single-dwelling-covenant. So i guess the answer is "up to a point." It will depend partly on the area.
The ppor we bought was a villa in a group of 4 and it has a good view of a valley, its slightly elevated it had very cheap bc rates as we manage this ourselfs between other owners which appealed to us when we bought.
There are a few not too many 1000 sq m blocks redeveloping around the joondanna area and there has been some go of the market go very quick and nearly built within the last 3 mnths, hence why i was intreged to know if this would possibly effect our value of our property, not that it matters because we plan to hold for at least 6 years, our street is very mixed villas units new houses and old on big blocks.