Bang for your buck
There has been an emerging trend over the past two years where neighbours are getting together to sell their properties in a single lot (often called a ‘megalot’) to developers. This trend has been attributed to the government’s infrastructure programs which have led to the re-zoning of land close to new major projects such as train stations or hospitals.
The re-zoning has permitted the construction of medium to high density apartment blocks on land which was previously restricted to single dwellings. This trend has been evident in cities like Sydney and Melbourne.
For example, in Castle Hill in Sydney’s Hills District, 25 neighbours have come together to sell their homes as a single 24,000 sqm lot. The single lot is said to be worth approximately $100 million. This land falls within the area proposed to be re-zoned as part of the development of the North West Rail Link with a station being built nearby. If this megalot were to sell for $100 million, each vendor would pocket $4 million. This would be around 3 times more than the median house price for the area.
The ‘megalot’ trend has occurred in many areas as a result of:
- Being approached directly by a developer;
- Homeowners responding to letterbox flyers; and
- Neighbours forming syndicates on their own initiative after a re-zoning of the area.
If your land has recently been subject to re-zoning this may be something you would be interested in doing. However, before entering into any agreements it is recommended you contact a lawyer to ensure that your rights are protected. The lawyers at The Quinn Group can help with this, please call them on (02) 9223 9166 or submit an online enquiry today.