Hi folks, I’m just after some thoughts on a potential opportunity I’ve had come up. There’s a house that’s just gone up for sale next to one I own in Southport (Gold Coast). The zoning in the area is RD4 which allows one dwelling per 200m and each property is just over 500m (i.e. zoning for potentially 2 residences each on their own).
I bought the original property with the thought of future redevelopment potential but primarily for buy and hold. With the property next door now up for sale the combined holdings would allow for 5 dwellings to be constructed (over 1,000m of total land) instead of 2 lots of 2 while they’re single holdings.
The question is; how much more valuable (if at all) would the two holdings be together given the increased development potential? Assume each lot is worth in the $400k region on their own. Are we looking at an $800k combined value or would the sum of the parts command a higher price?
I know that’s a very broad question and no doubt the answers involve a heap of caveats but I’d be interested in peoples’ thoughts. A development feasibility is being done separately so I’m mainly interested in thoughts on combined land value.
I bought the original property with the thought of future redevelopment potential but primarily for buy and hold. With the property next door now up for sale the combined holdings would allow for 5 dwellings to be constructed (over 1,000m of total land) instead of 2 lots of 2 while they’re single holdings.
The question is; how much more valuable (if at all) would the two holdings be together given the increased development potential? Assume each lot is worth in the $400k region on their own. Are we looking at an $800k combined value or would the sum of the parts command a higher price?
I know that’s a very broad question and no doubt the answers involve a heap of caveats but I’d be interested in peoples’ thoughts. A development feasibility is being done separately so I’m mainly interested in thoughts on combined land value.
