Hi All,
A relative of mine owns about 5 acres of land to the North of Brisbane. Over the last couple of years the areas surrounding them have been developed, with the last set of houses being built right up to the boundary of their property. Assuming the property zoning allows it to be subdivided into residential blocks I would like to understand what value a developer may put on a property like this, ie, if Devine knocks on their door and offers them $X for their property what would be a reasonable value?
My very rough estimate is.... current prices for newish 4+2 houses in the estate next door are in the $400K to $500K range, which I guess puts the price of a block of land at around $250K??? Taking away infrastructure costs of $70K per block, and another $30K for developers profit (I've got no idea if those numbers are in the right ball park) gives a raw figure for the dirt of $150K per block. In 5 acres (20,000 sq m) I guess you could fit 25 blocks (assuming 650 sq m average size) after taking our space for roads and "green" areas. So 25 x $150K = $3.75M. That seems a little optimistic to me, so maybe the costs of development are much higher??
Anyone got a more accurate way of coming up with a number? Thanks.
John.
A relative of mine owns about 5 acres of land to the North of Brisbane. Over the last couple of years the areas surrounding them have been developed, with the last set of houses being built right up to the boundary of their property. Assuming the property zoning allows it to be subdivided into residential blocks I would like to understand what value a developer may put on a property like this, ie, if Devine knocks on their door and offers them $X for their property what would be a reasonable value?
My very rough estimate is.... current prices for newish 4+2 houses in the estate next door are in the $400K to $500K range, which I guess puts the price of a block of land at around $250K??? Taking away infrastructure costs of $70K per block, and another $30K for developers profit (I've got no idea if those numbers are in the right ball park) gives a raw figure for the dirt of $150K per block. In 5 acres (20,000 sq m) I guess you could fit 25 blocks (assuming 650 sq m average size) after taking our space for roads and "green" areas. So 25 x $150K = $3.75M. That seems a little optimistic to me, so maybe the costs of development are much higher??
Anyone got a more accurate way of coming up with a number? Thanks.
John.
