Property in premium location boasts medium-density potential
In our first edition of Deals & Don’ts, we take a look at a single-dwelling property that has the potential for a 4-storey development.
The property was located in Perth’s southern suburbs and comprised 3 bedrooms, 1 bathroom and a carport on a 799 square metre block zoned R15.
Momentum Wealth’s in-house research team identified the property when it was listed for sale in March 2016.
The property was in a premium location being:
- Less than 200 metres to a major park
- 600 metres to the Swan River foreshore
- 675 metres to the Canning Bridge train station
While these features made the property highly appealing place to reside, what was of particular interest to our research analysts was that it was located within the Canning Bridge Precinct Structure Plan.
Under the proposed structure plan, the property will be subject to an amendment to its current zoning that would allow for a 4-storey residential development with approximately 36 units.
This would turn the property into a high-quality development site in which our clients can either elect to:
- Realise the development potential of the site by completing the project themselves.
- Attain development approval for the project, which they could then sell to a developer to complete.
With a limited supply of medium-density housing in the area and the premium location of the property, a boutique residential development would suit potential downsizers as well as young professionals.
Following due diligence from our buyer’s agents, our client was happy to proceed and we were able to secure the property for them for $792,500.
This price paid represented about 96% of the estimated land value alone, meaning the client paid a negligible price for the dwelling itself, which will be eventually demolished, and in turn maximised their end profit.