Proposed planning changes may impact your investment property’s value in Perth
Recently, the WA Planning Commission has recommended changes to the residential planning codes that in effect will significantly reduce the development potential of many properties in areas zoned R30 and R35. The proposed changes to the residential design codes will reduce the number of multiple dwellings currently allowed in R-30 and R-35 zoned areas throughout the state.
If approved by Government, the proposed amendment, which will affect thousands of property owners, will undermine progressive changes that cater for the State’s rapidly growing population. Changes implemented in 2010 created the potential to build 7 to 10 units on 1000 square metre blocks which are zoned R30. However, if proposed WAPC R-Code changes are approved, blocks of this size in R-30 zoned area will only be able to accommodate three units.
The downgrade, which will ultimately lead to a reduction in property values, will affect properties in inner city locations as well as properties zoned R30 and R35 in many areas which are over 15 kilometres out of the city, and regional locations.
Increasing density to cater for a growing and ageing population is a sensitive issue that needs to be well thought out and carefully managed. No one is suggesting that medium or high density should be in every street and every suburb. Encouraging quality designs and appropriate location choices are essential components of planning for our future housing needs. For example, a quality design can deliver a seven or ten unit development that is smaller in terms of building size than an equivalent three townhouse development.
However, if Perth is going to accommodate a rapidly growing population, which increasingly wants to live near work and amenities, and we want to reduce congestion on our roads, we simply can’t afford the urban sprawl to continue indefinitely.
Momentum Wealth will be lobbying for landowners to reject this change.
Action required – If you own a property that may be affected you should apply for planning approval now so that you can “lock in” you the development potential of your property without having to finance the construction for a number of years. If you don’t act now and the proposal is implemented early next year as expected, you will not only miss out on the potential profits from developing, you may even find that your property goes down in value from what it is currently worth.
If you think your investment property may be affected, our Development Manager – Zac Morrow is happy to help with specific information and relevant advice. Please contact Zac on 9221 6399 or firstname.lastname@example.org to discuss your situation further. Talk to him personally at our property development seminar on the 9th September on Tuesday.
P.S. It’s not too late to get your planning application in to “lock-in” the development potential of your property for a number of years, so call our developments team now to discuss a course of action.