How to value a multi-unit site?

We have a 1,240sqm property that can potentially hold 4 or 5 units.
It's only a 24.5m frontage and not a corner, so its not suited to sub-division.

In our area, $300k will get a cottage block, around 10m x 34m.

So assuming we could get say 4 units onto our block, (ignoring for now the actual costs to us for surveys, approvals, water, power, sewerage, etc, plu actually building the units) what's the land value for each unit? 4 x $200k? Less?

(Basically I am trying to figure out whether its worth more as a single residential with the house on it, or as a development block.)

 

Are you asking what the land value component would be if you built a unit on each of these, or are you actually just asking how much would each lot be worth?

 

Hi Big Aussie

Any developer willl work this equation back from the retail prices of the finished units. What would you expect them to be ?

 

Retail prices of units - land purchase cost including stamp duty - development expenses - developer profit margin - selling cost = land price.
With 24.5 m frontage and not being a corner I would say its either 4 larger units or 5 small ones as you will loose some land in front due to set backs.

 

Look for comparable (settled) sales in the area on real estate sites to get a gauge if the end value you have concluded is accurate and work backwards from there.

Talk to the active agents in the ground to get a feel for what renters / buyers are looking for and also to confirm your end values.

Chat to a local Buyers Agent as well. May be one in your area in here?

Confirm with a surveyor whats possible first.