Hi Pcer's Recently bought two development LMR2 blocks in Acacia Ridge which are diagonally across from each other. Looking to land bank the sites. Any locals from the Brisbane market that could share insights on how the area could perform into the future. These are probably the last LMR2 sites which can be bought for around 400K in BCC. Though, it was a speculative move, it did fit my criteria of land banking affordable development sites. Hoping to see moderate growth of 100-150K in the next five years, the more the better.
Acacia Ridge has seen some pretty exciting development since LMR zoning started to happen around 2011. I would expect the growth to continue at roughly the same rate as more development takes advantage of the LMR sites. There's really no where else around it that's ripe for the same growth, particularly given Rocklea and Archerfield flood so badly. The houses there also tend to be a bit bland, but totally bulletproof ex-housing commission and post-wars. Lots of asbestos, but that's sometimes a good thing. I'd be confident in saying you've purchased a solid investment.
Thanks for the insights @Tom Rivera. I am looking in the area also, are there any bad parts to look out for? Also did you know if this area is prone to flooding? Cheers again James
There isn't too much of Acacia Ridge that does flood. You can check flood awareness maps at Flooding in Brisbane | Brisbane City Council
When I was at school in the area many moons ago, the bottom end of Watson Rd use to flood, not sure if that end was classed as being in Inala or Acacia Ridge though...
Very few residential properties flood in Acacia Ridge. I've attached a couple of screenshots here to illustrate. The interactive mapping wouldn't let me show multiple overlays so I'd recommend heading over to the Citiplan Map to get a closer look, but the screenshots give you a good idea. The whole of Acacia Ridge is current and ex housing commission, so you need to keep in mind that the vast majority of it is lower socioeconomic. You really need to go street by street. For example, there were a pack of ratbags on Bellamy St that kept stealing people's hot water systems for too long.... not sure if they're still there. On the other hand, Sandeman St was almost entirely owner occupied by long term owners and generally considered the best street in the Ridge. There's also a pile of much more modern lowset brick project homes in the south eastern corner. They command a bit of a premium to buy and rent, but the neighbourhood really isn't any better. In addition, almost every house on Mitchell St has had serious slab issues, most of them have had alot of expensive underpinning by now- last one I saw was quoted $40,000. Not sure if there are any other pockets with the same issues.
Are you planning to purchase a LMR block or a nicer home in the area? The LMR ones are getting snatched up quite quickly right now. If there's an LMR on a 600sqm+ block under 400K, snatch it up, but they are rare now
Hey Guys, im just curious as to what you get actually develop on a 700m2 block zoned Lmr? seems that lmr is 2-3 stories but not sure of the floor space ratio
Hey Joseph, I believe on a 700 block you can get 4 townhouses if they are joined in pairs. Frontage is important here though, some of the blocks are 16.1m frontage, but some are closer to 18-20. I've seen a few ones which managed to get 3-4 on a 650 block. Alternatively you can do 5-6 flats, 2 stories, parking on lower level with residences above. I've seen 800 blocks with 6 units, mostly 2 bedders. I've also seen a 870 block with 7 residences. Guess it all comes down to planning regulations, however I heard that BCC is relatively flexible with Acacia Ridge, hence why many parts were rezoned to LMR 5 years ago or something. @Tom Rivera is quite familiar with Acacia Ridge LMR!
Thanks a lot Kevin. I ran some figures on some of the properties there and they dont quite add up for the time being. maybe a good idea to land bank. There is a property for sale on 900m2 but they are wanting 650k plus. If you get 7 town houses on there with stamp duty that 100k a site plus around 170-200k build cost each. There only selling for around the 300k mark in acacia ridge so doesnt quie stack up. Thanks agin for your advice
