How big does subdividing potential play in price?

If the location, house quality and area are all similar. One property is subdividable and the other one is not.
How much price different would the first one have compare with the second one?
Thanks

 

Difficult to give you specific number as a subdividable block in Sydney would be very different to say the same block in Perth. I would say providing city/suburb name would be a good start.

Cheers,
David

 

The price will depend on the perceived value of the site. Most of the time people who are willing to pay premiums for development blocks are only interested if their is a good profit margin. It all depends if this block will yield an end product with a good profit margin for the buyer or not.

 

$14,570.14

 

If this was in inner south side Brisbane in some of the small pockets then it would make a massive difference,and could be worth 200k more if the blocks are already split on the title ,but most who have control of blocks like that know the value and are rare..imho..

 

Everywhere will be different.

With the subdivisions I've done there was no difference in price between a block that was able to be subdivided and one that wasn't. Which meant I was only paying land value (after subdivision) and getting a house for free.
As a result there was a fairly healthy profit margin in them.
If a property is advertised with subdivision potential then there will probably be a price difference. The secret is knowing more about what can be done with a property than the owner or the agent. I never had to compete against anybody who knew the property's true value.

Willy

 

One way to dramatically escalate your property value is get an actual permit before selling.

The cost of a permit is akin to renovating a bathroom but the rewarding escalation in value could be 10 or 20 times this.

Best of all if it is your PPOR these profits are tax free

 

How did you calculate your numbers?
When I crunch the numbers I get $14,570.27.