Canberra's small residential development less restrictive: HTW

Small projects in Canberra for advanced property investors in the residential space revolve around development, according to Herron Todd White’s latest market report.

The property advisory firm states examples include new multi occupancy construction and extensions or renovations to existing dwellings.

These developments require some expertise in town planning and construction to enable the best returns.

The recent release of cleared Mr Fluffy blocks onto the market has provided opportunity in this area as planning and development rules are less restrictive.

Large centrally located blocks present the best land for multi occupancy development.

RZ2 zoning permits redevelopment. Other land features in demand include street frontage, location and access to services and corner locations.

As Canberra continues to expand with land releases occurring in Gungahlin and the Molongolo Valley, the demand for centrally located larger residential blocks with potential continues.

The market for this type of property is expected to remain strong over the short term. It should be noted however that planning rules require some administration and preparation work to allow development to occur.

In some cases this has resulted in long term land owners being able to sell to experienced developers at a premium due to the development potential. As stated town planning and construction experience is important.