WA Perth market 2018

What have I got to feel smug about?? I just don't see what you see, show me what you see/evidence.

I hold properties in Perth and I would also like to develop property in Perth, this market impacts on what I can do.

 

I have shown and quoted a fair few examples of why I feel the way I do, both anecdotally as well as statistically both Perth real estate wise as well as regarding wa economy

 

Wondering if anyone can tell me why this house is R25 on 594sqm of land but they said if the house is gone you can have 2 street front blocks.

24 Napier Road, Morley WA 6062 - House For Sale - 2014149404

I thought R25 is 30sq min 350sq avg
Which I thought means with the 5% variation off the 300sq one you would need 620sqm min total land.
Actually I am not even sure that is right, because maybe you need it to be 700sqm of land since the "avg" is 350.
How do you figure out the minimum required land for R25 (assuming you met the conditions for the split zoning)

 

I think the new DC 2.2 may allow for this but not 100% sure. I will have to check tomorrow.

 

Dc 2.2 Development Control Policy 2.2 Residential Subdivision

Have a look at 4.2.4 Variations to average lot size greater than five per cent criteria

In addition to the preceding criteria,
any average lot size variation greater
than five per cent meets all of the
following criteria:
-- a single residential coding of R10 to
R35 applies to the land.
-- the site is a corner lot with frontage
to two different street names or any
other lot with frontage to more than
one dedicated street (excluding a
primary (red), other regional (blue)
or any other major road, including
state and federal highways, with
access restrictions). Corner lots with
frontage to the same street name are
not generally supported, however
will be considered on merit against
this policy, recommendation of local
government and presented to the
WAPC for determination.
-- all proposed lots comply with the
minimum lot size and frontage
requirements specified in Table 1
of the R-Codes.
-- crossovers and driveways to
proposed lots are provided in
accordance with Australian Standard
(AS) 2890 and the R-Codes.
-- any corner truncation, pedestrian
access way, vehicle right of way or
laneway widening is excluded from
the calculation of the minimum lot
size.

Sorry about the formatting.

The key in that statement is this: In addition to the preceding criteria, which means it needs to meet the criteria first and can only then be considered for the greater than 5% variation.

 

Thanks for the link Perthguy.

Looks like

1. For battleaxe block, if the average is 350, then the whole land to split needs to be 700 minimum regardless of the min lot size.

2. For non-battleaxe, up to 5% off a single lot, so for R25 I think this means 350 + 335 = 685 min total land

3. For non-battleaxe, if R10-R35, and if corner lot with 2 street frontages on different streets, then it looks like the average does not apply and you can just go by the min lot size(?).
Hmm I am not sure if I understand this correctly.
"all proposed lots comply with the minimum lot size and frontage requirements specified in Table 1 of the R-Codes"
Does that mean if all these conditions are met then you can ignore the avg lot size and just go by the min for each lot?

 

I think that is correct based on this:

4.5.5 The minimum battle-axe lot area will be as set out in clause 5.1.1 and column 4 of Table 1 of the R-Codes. The WAPC will not permit reductions in the minimum or average lot sizes for battle-axe lots​

I think so.

I think so.

The other complication is the block is zoned R20/25 under the City of Bayswater Local Planning Scheme No. 24. This means there are additional requirements to meet R25. Check 8.5.4 Dual Coding of the scheme.

https://www.planning.wa.gov.au/LPS/...yswater - City of (Scheme 24)/Scheme Text.pdf

8.5.4.1 Where an area is designated with an R-Code of R17.5/30, R17.5/25 or R20/25, development to the density and standards of the higher code shall only be permitted subject to the following:
a) The property is required to be connected to reticulated sewer;
b) In the opinion of the Council, the proposed development has a high degree of compliance with adopted policies of the Council, which have been endorsed by the Commission, and provide for development at the higher codes in dual coded areas;
c) The existing dwelling/s are to be of a standard equivalent to that of the proposed new dwelling/s. To achieve this, the Council may require that the existing dwelling/s be upgraded as a condition of development approval.

And additional:

8.5.4.3 R17.5/25 and R20/25
In cases where development or subdivision proposals are presented to Council for residential development based on the higher density code in a dual coded area and the proposal meets the requirements of clause 8.5.4.1, such proposals may be approved by the Council providing the following process is adhered to:
a) An advertisement/notice is placed on the development site setting out details of the proposal and that public comment is invited.
b) An advertisement is placed in the local newspaper circulating in the district advising the public of the proposal and that an opportunity exists for comment.
c) Affected landowners adjoining and near the proposed development site are advised in writing by the Council setting out details of the proposal and inviting comment.
d) That a twenty one (21) day advertisement period apply.
e) That the costs associated with the public consultation procedure be borne by the applicant.

Having a look at 24 Napier on the City of Bayswater city maps: http://cityofbayswater.maps.arcgis.com/home/index.html, it looks like there is already a strata plan in place.

Surely that would make any further division of the land more complicated? I think it is possible to divide a strata lot, which I think Landgate calls a plan of resubdivision. I read all of this long ago in the Strata Titles Practice Manual for Western Australia or Land Titles Registration Practice Manual.

http://www0.landgate.wa.gov.au/?a=2336

https://www0.landgate.wa.gov.au/?a=11021

Long story short, this looks complicated and messy and may not be a 2 unit site. Put it this way, I would not take town planning advice from a Real Estate Agent.

@Aaron Sice, what do you think?

 

Thanks so much for that!

Agree with not taking town planning advice from a re agent. Was mainly trying to learn more about what the actual land size restrictions were.
Interesting if it is correct that a corner block with 2 street frontages means that the avg block size does not apply and only the min block size, which would mean you can fit in greater density. I am guessing corner blocks are hard to come by and already more expensive though.
Anyway, thanks again.

 

For point 3 the average still applies but you are seeking a greater than 5% variation which is at the discretion of the WAPC.
It can be greater than 5% but not greater than making the lot smaller than minimum, if this was R20 which has one of the biggest differences between avg and min then you might be asking for around 10% variation.

From recollection, and because it says must meet the previous criteria, it's only valid for one lot. So if it's a 2 lot R20 scenario on a corner then it must be a 450 + min 350sqm lot

 

Ah thanks Westminster.

For a regular non-corner blocks on R20, and ignoring the variation for now, does the "avg" lot size (450) mean you would need 900sqm to split? I've been assuming the starting point for calculations is the average lot size, so for 2 lots you start with 450 + 450 = 900 and then if you wanted one to be bigger, you would have to take it off the other but stick to the min. For ex. min 350 would then be 350 + 550 = 900 again.
I was assuming this by way of them using the word "average". Is this not correct? Can you split an R20 that is 800sq with one 450 and one 350?

 

If it's not a corner then your understanding is correct. 900sqm is the amount of land you need to meet the averages and the minimums. This can be made up of a 350 + 550 as you say.

Only when it is a corner can you have one at average (or more) and one at minimum (or more) if you apply to WAPC for the more than 5% variation and meet all it's criteria.

Note these variations are only available via WAPC strata survey or green title survey, they are not available under built strata Council approved subdivisions.

 

I'm pretty sure I've seen a few recent examples of a non corner lot getting more than 5÷ variation if it has dual frontage (eg a laneway). Ie. Does not have to be a corner lot

 

Note with CoB you get r25 if you goto advertising but it's a 2 lot limit. Eg if you have a 1200sqm dual zoned site you can get r25 but max 2 lots.

 

8.5.4.4.1 Rl7.5/35, R20/40 and R20/35
In a dual coded area, when considering an application for development
approval or a built strata approval which involves more than two grouped
dwellings or more than two multiple dwellings on a lot, or when making
recommendations to the Commission in respect of a subdivision application for
‘Residential’ owned land that proposes more than two lots, in any of those
cases, where there is a proposal to apply a density code above the base code as
provided in Clause 8.5.4.4, the following provisions shall apply:
(a) The lot the subject of the application must have a total lot area greater
than 1300m2; and
(b) Where the application proposes more than four grouped dwellings
and/or four multiple dwellings or more than four strata lots, or where
the subdivision or survey strata subdivision application proposes to
create more than four lots, at least one dwelling or lot must be provided
as a single bedroom dwellings or as an aged or dependant persons
dwelling.

 

That probably would have been under the old interim policy that allowed lots at minimum instead of average for quite a few reasons - generally any sort of side by side or corner project. That policy ended last year

 

Yes it was for a 12÷ variation on r20 submitted in Nov last year.

 

Thanks a lot for the replies on the zoning and land limits. Much clearer now.

Guys/gals - would you say that in your experience corner blocks are mostly priced higher enough to offset the gain you would get from them?

 

Not always. It depends. Some real estate agents are not across the policies.

 

on a side note.

What would the expected costs for a basic 2 lot subdivision in Perth.

Example being r20 1000sqm corner allotment. Retain existing dwelling and new vacant allotment.

 

Interesting, this is what I am seeing in my suburb Mt Lawley.

Period homes in high demand and selling on day 1. On my street alone they just get snapped up. These are homes vary that perhaps need more work/extension around $1.2-1.5M. However as I have always said the market is price sensitive, get this wrong and it wont sell.

As I also mentioned our friends sold at $2.8M around the corner from us, I have not seem this happen for a long time, did not hit the market it was a random buyer interested in their property.

As far as apartments go I think there is still too much choice/supply

@Westminster how did you go with your Wright Street units? are they selling?

MTR