More and more Melburnians are teaming up with their neighbours to sell their properties. As land values in Melbourne continue to soar and zoning rules allow multi-residential developments, valuers say that consolidating sales can add a premium of 30 per cent, especially if the zoning is developer attractive.
“There is a big trend at the moment to get ahold of larger lots to do townhouses on,” said Vertical Real Estate’s Peter Bozinoski.
Bigger lots are becoming more available. Just recently, eight Cheltenham households teamed up to sell their separate Bay Road properties to developers, asking about $9 million. Last May, a 2,945-square metre lot in Doncaster was also sold for $6,328,000 after four homeowners combined their properties. This translates to $2,150 per square metre, even though Doncaster sites normally sell for around $1,500 per square metre.
“It’s more valuable in areas that have a development activity zone,” said Greville Pabst of WBP Property Group. “Particularly in the eastern suburbs, the new zoning has really changed the landscape because it’s allowed developers to take their cranes into our inner city.”
According to urban planner Colleen Peterson, areas popular for group sales were designated for significant change by planning policy.
“This sort of change is not happening in really well-established suburbs that have a truly suburban character,” she said. “These are apartment suburbs on the doorstep of major infrastructure.”
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