Should I buy the house surrounded by vacant lands owned by Housing Department?

I am looking into buying a house that will be re-zoned from R2 to R4 (high density). So my strategy is buy it now, rent it for a few years and sell it to a developer once the rezoning is complete.

But I find that there are 3 vacant lands around this house that are currently owned by the housing department. I don't know why the Housing department has been holding on these 3 blocks of land for over 10 years now. How would that impact my future sale of the house to a developer? As this house is too small for the minimum lot size for apartments, the developer will need to also acquire joining land. If the Housing department won't sell their land to developers, then my house will not benefit much from the re-zoning.

I am hesitant to make any offer for this house. I want to know what you guys think about this. Thank you very much.
 
I wouldn't do it. The DOH may have long term plans to build apartments, villas, aged care etc there.
Aged care would be ok but anything else will devalue your land.
If a developer needs to purchase more than your lot to make it feasible then they would be hesitant to purchase from DOH
 
If the house is to be sold to DOH, do they normally acquire land at good prices?

Thanks for your replies. There is another possibility - after this property is re zoned to R4, the DOH may want to purchase this house to do bigger apartment development. If this is the case, does anyone know if they pay a good price to acquire neighbouring land? Thank you.
 
unless you are getting absolute bottom bargain, i dont see a point buying such piece of land.

if DOH decides to build next door, it will devalue your end result properties.

DOH buying your land.... without knowing which council the land is in.. i would say chances of that happening is very slim.. as you said they own 3 blocks.
 
my house will not benefit much from the re-zoning.


about sums it up.......

This here is what your main concern would be. Your reasoning to purchase was due to zoning change, if thats the case make sure what you're buying will have a benefit and not relying on selling to a developer who would also need to purchase extra land to make it work.
 
Top