Does land appreciate if it can’t be subdivided?

hi everyone!


Thanks in advance for helping out.


We’re currently looking at a property about 10km out of Brisbane CBD with a huge block (2800m2). It isn’t subdividable as it backs onto a creek and the frontage isn’t there as it’s tucked away to a corner of the street (image attached)


My question is.. does land this large (largest blocks closest in the suburb are 800m2) still appreciate even though it can’t be subdivided??


Is there anything else we should worry about.



Thanks


Ps. I should add the land behind us park land and then turns into industrial (but isn’t intrusive or loud and is quite a distance away)

 

Even if not subdivided, could you build a big granny flat?

 

Potentially. But you can’t rent them out externally in Brisbane and I’m looking at capital gains more so than anything else.

 

What did this land sell for 5yrs ago for , 10 years ago for, 50 years ago for , 100 years ago ?
If it has appreciated during the last 100yrs I cannot see why it would not appreciate in the next 100 yrs.

 

Is the land behind park or is it undeveloped industrial land - big difference. Residential Land backing onto industrial will have a lower value than land not adjoining industrial uses

 

It’s council owned land for people to use as a walk way as well as park benches etc.

So it shouldn’t turn into industrial at any point soon. Separated by a wide (not overly deep) creek.

 

Hahaha, good point. I guess I meant, as land gets more scarce, even though it won’t be able to be subdivided like the majority of the suburb is being. will it still increase significantly.

 

Ownership and current usage don't factor into it - what is it zoned? Is it community land or operational land on Council's public register? (Community Land cannot be sold without a rezoing and planning proposal). Are there environmental zone protections on the land?

 

I’ll have to look into it, is there an online map to check?

Thanks again for all your help.

 

It is a register of council land.

 

We bought a large block of land which can’t be subdivided (due to a VPO) in Brisbane in 1988.

Over the last 31 years, it has increased in value at an average rate of 9.3% pa.

 

Thanks for this information, that’s an incredible increase.

 

the issue with the land is it’s low frontage and only 1 access point. It goes in at the front as seen in the image and then widens substantially.

Surrounding it and on the other side is all council land so as far as I can tell there’s no possibility of subdividing in the future.

 

I don't see the issue. On your own picture, there are two blocks that are less than half the frontage. Plenty of space for a driveway/access to the rear. Could build a row of townhouses, subject to zoning & flooding issues.

What is the zoning?

 

I’ll have to double check the zoning of the council land which I’ll be calling through to the council today to check if it’s community or public register (as recommended by Scott no mates to make sure a factory can’t be built behind me)

The zoning of the suburb is low density residential though.

Similar land parcels have gone for double the price that are already approved for subdivision which makes me worry slightly.

It’s in a risk area for flooding due to the suburb but has never actually been flooded (even though the land runs adjacent to the creek)

 

OK, so clearly there are a few issues that you need to look into. It's no good dreaming of sub-dividing something when you don't know the zoning or if there's flooding issues.

 

Sorry, I do know the flood risk - it’s a risk but has never flooded previously.

Behind the property (where there’s already industrial) is light industrial and the house is zoned for low density. What I don’t know is the council land surrounding the property which I’ll have to double check today.

 

What is shown on the flood map? Is your land also affected by innundation?

 

No inundation to speak of. I’ve just spoken to the council and they have said the flooding is due to the water corridor / creek body running adjacent to the property. It sits at a 1-4% chance of flooding and for minimum floor levels we’d need to get an RPEQ engineer to assess.

The overlays on the property are biodiversity (there’s a few large trees), water corridor and there’s a sewer line running through the property also.

As for the land surrounding it I’m in contact with asset services however they have said the parkland surrounding it is council and public land as there’s a lot of trees and nature surroundings there is a very low chance it would be sold for further industrial development. I’ll still double check if it’s community land or council public register.

I think insurance should be fine if the property is above the minimum level required.

They said it’s best to do a prelodgement meeting to discuss if there’s any potential of development in the future.

It’s estimated with 26m frontage and the land blocks need to be 400m2 and 600m2 at the rear. I’m just confused as to why developers haven’t picked this up - perhaps because there’s so much effort to put in regarding the overlays?


Look forward to hearing your thoughts