Which zoning has more potential ?

I'm looking at two properties.

First one is 400m2 zoned in a mixed residential are with 6 storey building height restriction.

Second one is on 600m2 in a light industrial zone with 3 storey building height restriction.

Based on this limited information I'd like opinions on would you think has greater potential for land value to increase in the future?

Both currently have houses on them with rental yield about 4.5%.

Thanks
 
What are the FSRs for each of the sites?

Is there a minimum site area required? ie do you need to amalgamate with another block (due to setbacks, overshadowing etc)?

Are the blocks land locked or are the adjoining blocks in similar condition/development potential?
 
What are the FSRs for each of the sites?

Is there a minimum site area required? ie do you need to amalgamate with another block (due to setbacks, overshadowing etc)?

Are the blocks land locked or are the adjoining blocks in similar condition/development potential?

Both blocks would require an adjoining one to be able to develop, but both have an adjoining block with a an old house in a similar condition. (Whichever option I would be looking to buy the next door block in future).

400m2 one is one away from a corner block
600m2 is a corner block
 
It is pretty much crystal balling - if the zoning isn't going to change, and the density isn't changing due to a new LEP etc the main driver to adding CG is amalgamating the sites - an option not available to someone looking at buying a single site in the future (as the single site will not be able to be developed).

Work your numbers on purchasing the first at market, the second at a premium (you can afford to pay a premium as others won't have the same advantage as yourself) and then work back from sales price of the developed blocks.

Work it out in today's dollars.

Calculate the NPV & IRR on each to determine the best return.

It doesn't answer your question specifically but it is the tool that you should use to get the answer as to which to purchase.
 
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