Stand by for Australia’s town planning revolution: Terry Ryder
In 2014, it will gradually occur to property owners and buyers that there are new ways to create wealth in residential real estate, as a result of changes to town plans in major cities around the nation.
State governments and local councils are moving to free-up zoning rules and fast-track development, as a way of absorbing future growth in preference to allowing ongoing urban sprawl.
The changes are mostly aimed at allowing subdivision of the once-inviolate ‘Residential A’ housing blocks, as well as allowing medium-to-high-density to flourish, by raising height limits in key suburbs and adjusting minimum lot sizes to allow more developer-friendly plot ratios.
Not everyone is happy about these changes, some of which have been approved already, while others are still awaiting final approvals.
In some cases, the changes can deliver windfall profits to owners and developers. In other cases, residents will be horrified to find that a developer is allowed to build 10 units on a corner block at the end of their leafy suburban street.
Sydney is becoming a minefield in this respect, as in many cases the first residents hear about a “complying” development application is a letter in the mail alerting them to the imminent start of construction.
Also in Sydney, “Fonzie Flats” above garages can now be strata-titled and sold separately. In some parts of Sydney “Manor Houses” which look like large two-storey homes, but contain four self-contained units, can be built on street corner sites.
In Perth, a new minimum lot size (260m2) for a single house will have many investors re-visiting earlier feasibilities, as developers and builders take advantage of development opportunities which previously did not exist.
Changes to the R20 Code governing medium-density development means that a 900m2 vacant block can now have, for example, eight units where previously the developer could build only four.
In Brisbane, residential properties with larger allotments (1,000m2 or more) will be highly prized for their sub-division potential, especially in the middle ring suburbs.
The mix of housing allowed under the new City Plan would potentially allow the owner of a standard three or four-bedroom house on a 1,100m2 block to (a) demolish or move the old residence and build a low-to-medium density development or (b) sub-divide the land, move the original dwelling to one lot and sell the other/s.
melbourne, Adelaide and Darwin all have specific opportunities, but each with a common theme – the ability to do things on residential that were previously banned, as a way of creating in-fill development and containing urban sprawl.
Owners and buyers need to be careful to check things about with the local council. In some cases the new town planning rules are currently still in draft form and in others the new situation applies to specific areas and situations.
Terry Ryder is the founder of hotspotting.com.au and you can contact Terry via email or on Twitter.