This section provides an overview of how landowners can begin the process of lot amalgamation. The steps here are the ones we have encountered with our ongoing work. They may vary for your condition, but are illustrate of the typical steps landowners will have to go through to realise a precinct scale redevelopment.
Most suburban redevelopment happens on a single lot, where a house is added to the front or rear, or the existing housing is demolished and two or more are built in its place. The effect of this is to make almost all of the land into either house or driveway. This significantly reduces the amount of trees in areas, as well as significantly increases flood risk and increased urban heat effect (where built-out areas hold and magnify heat). Almost all suburban land is potentially redevelopable, meaning that, if we don’t change, cities and suburbs will become unlivable into the future.
The problems of current redevelopment stem from the small lot size. With larger lots we can optimize the buildings to increase the amount of open space, number of trees and parking spaces. But we can only achieve larger lot-sizes if landowners sell or the develop their land at the same time.
In order to encourage this process, council have allocated areas where the development rules make this more viable IF landowners work together AND if the development can also show community benefit (typically adding more trees and open-space). The benefit will be decided on by the council where the development is taking place, and will be costed to prove feasibility of development.
Financial: Evidence has shown that amalgamated lots sell for more per square meter than smaller, non-amalgamated, lots. Research in the US has shown that this amount can be between 15%-20%, but in some local instances has been shown to almost double the value of the land; particularly when it occurs over more than 2 lots and is close to services.
Planning: If council are implementing this, they will have included some benefits to promote the scheme (such as additional height, or pre-approval) and have done research to prove the viability of the forms of dwelling they want. As such not only will the development process be simpler, but all costs will be evident up-front.
Other outcomes: As the development of a larger lot, or a precinct, will be larger than a single lot development, landowners can negotiate for other outcomes, such as part cash, part new home, and so forth. This aspect is particularly important for older (land-rich/ cash-poor) people.
Step 1 Learn
Step 2 Establish
Step 3 Explore
Step 4 Meet
Step 5 Negotiate
Step 6 Finalise
'Super lot' for saleResidents in North Strathfield are joining the "banding together" trend in the hope of selling their homes in one "super lot" that is estimated to reap as much as $90 million. This trend of neighbours combining their homes into one large parcel to a developer, while gaining traction, is also sending chills down the spine of the smaller, suburban real estate agent who is being gazumped on individual listings. It was sold through JLL's Sam Brewer, head of metropolitan sales and investments, NSW, and Ben Hunter, national director international investments, Australia.
Melbourne residents double house valuesA band of residents in eastern melbourne have joined forces and doubled the value of their land by selling it as a super-lot.
Kellyville superlotA 6.22-hectare landholding made up of three separate lots in Sydney’s north-western suburb of Kellyville has hit the market with expectations of fetching more than $20 million.
Neighbours selling togetherOver recent months Australians have taken notice of the lucrative opportunity on offer for neighbours selling houses together. Every week there seems to be a new article published of a champagne popping vendor – and there’s something inside each one of us that is wondering why them and not me? Just recently, 6 homeowners in Melbourne’s south-eastern suburb of McKinnon (VIC) shared an $8.88 million sale. Meanwhile, in Castle hill (NSW), a group of 25 neighbours sold their homes three times their market value. Some fortunate homeowners have seen themselves earn $1 million over their house’s market value. According to industry experts, the developer demand for inner-ring future townhouse and apartment sites is rising steadily. As a result, clever neighbours are banding together to create thought-provoking potential sites for seasoned developers. By selling the properties in a single transaction, both the vendors and the buyers are striking a good deal. This is because the value of the land collectively increases. A larger development site can accommodate larger projects such as high-rise apartment complexes.