Tiny inner-city plot of land with huge potential going under the hammer

A little patch of land in a sought-after inner Sydney suburb has hit the market with a $1 million price guide, but there’s more to this vacant lot than meets the eye.

Occupying just 111sqm, 5 Sparkes Lane, Camperdown is sandwiched between two brick walls, currently overgrown with weeds and is devoid of structures except for a shed.

But while it’s currently not the most glamorous property on the market with a $1 million price guide, it has an ace up its sleeve that gives it plenty of potential.

The property comes with development approval for a boarding house, which includes four separate studios with kitchens and bathrooms, as well as a common area and motorcycle parking.

A 111sqm vacant lot in the inner Sydney suburb of Camperdown has hit the market. Picture: realcommercial.com.au

The approval was the result of a hard-fought battle to subdivide the lot from the neighbouring property on Sparkes Street, which also has approval for a separate boarding house.

Selling agent Kristian Morris of RWC Sydney City Fringe said the approval made the site a potentially lucrative development.

“Given its close proximity to the hospitals and university, boarding houses are quite popular in these city fringe locations,” he said.

“Someone has gone to great expense to get that boarding house approved, which is not easy. They’ve even gone to the Land and Environment Court, which is unusual.”

It might not look like much now, but the property has plenty of potential due to a hard-won development approval for a boarding house. Picture: realcommercial.com.au

Boarding houses have been promoted as a potential solution to the housing crisis by providing lower-cost accommodation than a typical self-contained apartment.

Units in boarding houses are often inhabited by students, single workers and pensioners seeking an affordable, no-frills home.

Smaller scale boarding houses can often be constructed with the same footprint as an ordinary house while allowing for higher density living.

More flexible tenures may also be ideal for people in transitional situations, such as those relocating for work or facing financial difficulties.

The property is tucked away down a quiet lane footsteps from Sydney University. Picture: realcommercial.com.au

Mr Morris said the property was zoned mixed use, meaning there was potential for other developments such as business or retail, subject to approval.

“The cost to build these boarding houses has risen so maybe there is another angle you could have with this property.”

The property goes to auction on November 29.