Sydney homeowners band together for $165m sale bonanza
Sydneysiders are being encouraged to sell the family home to make way for new semis and dual occupancies in the name of saving the nation’s housing crisis, as huge sites worth $90m in the east and $75m in the north hit the market.
And by banding together with their neighbours to offer developers larger sites, homeowners could potentially double the value of their properties, sales agents say.
Following the introduction of new laws designed to to promote redevelopment last month, Colliers International have listed an amalgamated block of five homes for sale in Double Bay with a $90m price guide, and another amalgamation of seven homes in Mosman with a $75m guide.
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The introduction by the NSW Government of an amendment to the State Environmental Planning Policy (Housing) 2021 in July allows DAs for dual occupancies and semi-detached dwellings to be submitted in more low density (R2) residential zones.
Colliers National Director Guillaume Volz admits that the new policy has been “a bit polarising in local communities, but forward thinking councils are needed to help with the ongoing housing crisis”.
He said there was strong demand in the lower north shore and the east for new residences on smaller blocks.
“The need for change is finally being realised, and although it’s going to increase density in these areas, that’s the future of Sydney,” Mr Volz said.
His colleague, Paul Ephron, said local controls previously didn’t offer enough development opportunities in areas zoned for low density.
“We’ve always had extraordinary interest from developers that want to participate in those areas however activating that interest has been difficult,” Mr Ephron said.
“The proposed changes now offer more opportunities and scale for significant investment in local communities that will further enhance and create vibrant centres and add appeal to the target market of these areas.”
The Double Bay listing offers 2,593sqm over the five properties at 6-12 Henrietta St and 7 Brooklyn Lane.
Meanwhile, the Mosman site offers 2,593sqm over seven properties at 5-17 Bond St.
Other low- and mid-rise housing reforms will commence later in 2024, and will include townhouses, terraces and two storey apartment blocks near transport hubs and town centres in R2 low density residential zones across Greater Sydney, the Hunter, Central Coast and Illawarra regions and mid-rise apartment blocks near transport hubs and town centres in R3 medium density zones across these regions.
These changes have already prompted major activity throughout Sydney’s premium suburbs,
creating the ability to free up housing stock in areas that are largely undersupplied, according to Mr Volz.
“The proposed low-to-mid-rise planning controls are already proving to be a very effective policy as it opens up areas that had compliant zonings but haven’t had the appropiate controls to make it feasible.
“Even ahead of the policy introduction, areas such as Mosman, Cremorne and Double Bay,
which are typified by strong end-product demand, have seen land owners recognise the opportunity to band together and offer their properties for sale to developers,” Mr Volz said.
The success of the policy is partly driven by economics with the planning uplift by providing homeowners the ability to amalgamate with their neighbours and derive in some circumstances between 75 per cent to 100 per cent value uplift compared to the current “as is” value of their properties.
“The reality is that if you don’t provide significant economic uplift, land owners simply don’t have the motivation to amalgamate and sell together.
“The Government’s Policy provides the incentive and then you’ll see the significant uplift in housing that’s desperately needed.” Mr Volz said.
“The important thing to remember is these buildings become local centres and attractions when they’re adopted correctly, adding vibrancy to the local community.”
Mr Ephron added: “The policy around increasing density is about creating attractive development, it needs to be well-designed to fit in with the character of the area and the growing needs of its people.”