High Density zoning

[TMNT]

jsut curious,

a particular area near me on a main street went high density zoning about 5 years ago, nothing particularly happened,

over the last 6 months, all of sudden, 4 blocks within 100m of each other are now selling as potential development sites all with plans and permits,

from an investment perspective, is it smarter to wait until a few of these sites have been built and there is some established price range or indicator, or will the prices of the land already have gone up, and will the early adoptors be the ones who are laughing from taking the risk

to be frank, its a fairly busy road, rush hour is pretty bad, not walking distance to any shops, near an intersection, but 2-3 mins drive to coles/woolies,

I personally cant see it being very desirable, but obviously once 3-4 towers have gone up, it might be completely different

how do you guys see situations where high density zoning has just begun?

 

[jenni_nextplace]

Not the slightest bit surprise with the 5 years of inactivity all the red tape and planning, the local council might have played hard ball.

I have seen a few high density zoning projects work and other not.

One high density building was built the middle of a paddock, looked like it was a flop for years, then things changed overnight and 10 years down the track its completely surrounded, very popular and has a community following.

From your explanation your development doesn't sound very attractive at the moment. I agree with you though once its finished it could look fantastic.

I wonder what the selling point will be. Are they going to sell the bling/lifestyle, sell the price, or sell the convenience?

 

[TMNT]

Not the slightest bit surprise with the 5 years of inactivity all the red tape and planning, the local council might have played hard ball.

I have seen a few high density zoning projects work and other not.

One high density building was built the middle of a paddock, looked like it was a flop for years, then things changed overnight and 10 years down the track its completely surrounded, very popular and has a community following.

From your explanation your development doesn't sound very attractive at the moment. I agree with you though once its finished it could look fantastic.

I wonder what the selling point will be. Are they going to sell the bling/lifestyle, sell the price, or sell the convenience?

well its a blue chip area so in a perfect world the best place would be walking distance to a shopping centre, top of the hill, great views, good price, not on the busiest road, etc. etc.

there is one development about to start on the opposite,

my guess is that it would be targetting people who want to get in but cant buy a full house and land in teh area or the downsizers who arent looking for a backyard

 

[Scott No Mates]

Living on a main road doesn't bother you once you are a few floors above it or at the back of the block.

5 years lead time? Oh, there was a GFC and a lack of finance.

 

[mattnz]

jsut curious,

a particular area near me on a main street went high density zoning about 5 years ago, nothing particularly happened,

over the last 6 months, all of sudden, 4 blocks within 100m of each other are now selling as potential development sites all with plans and permits,

from an investment perspective, is it smarter to wait until a few of these sites have been built and there is some established price range or indicator, or will the prices of the land already have gone up, and will the early adoptors be the ones who are laughing from taking the risk

to be frank, its a fairly busy road, rush hour is pretty bad, not walking distance to any shops, near an intersection, but 2-3 mins drive to coles/woolies,

I personally cant see it being very desirable, but obviously once 3-4 towers have gone up, it might be completely different

how do you guys see situations where high density zoning has just begun?

My general observation is that most development sites being sold with planning approval don't stack up financially and they can't finance it, which is why the owner isn't developing it themselves.

4 within such a close proximity and none actually under construction rings alarm bells to me. I would be really careful running the numbers on it and considering trying to get presales with several competing developments at the same time.