Landowners
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.
What is the current impact from development?
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.
What is the new approach to redevelopment?
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.
How will the new approach benefit landowners?
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.