Choosing The Right Block Of Land For Your Multi-Unit Development
Choosing the right block of land for your multi-unit development
The block of land you choose to develop is the single most important decision you’ll make in the property development process. The right block is the sum of many important factors, from size to orientation and often the problems can appear in unlikely places, like the surroundings or slope of the block.
The block of land you choose for your multi unit development will directly determine your site and establishment costs. A well chosen block is easy to work with, therefore keeping costs to a minimum. This may sound obvious, but the range of difference in these costs can be in the thousands, making a significant impact to your eventual return. The level of importance here is paramount, as a poorly chosen block can be the difference and even make the development not worth doing.
Finding the right block of land for a development can be time consuming, but it will be well worth the effort when the right opportunity comes up.
The following elements all play a part in the suitability of a block of a land you intend to utilise for a property development project.
Location
Location is very important. Your parcel of land should be in a desirable or upcoming neighbourhood with good infrastructure and amenities. Amentities such as public transport, medical services, hospitals, parks, childcare and schools nearby can help to maximise your selling potential and price. Thankfully in Melbourne, we’re not called the world’s most liveable city for nothing, there are a lot of excellent suburbs with fantastic infrastructure and amenities.
Size
One element is the current regulation that 25-35% (dependent on land size) of your potential development site has to be set aside for private garden space. See this link for more information.
Shape
The shape of the land will impact house design and awkward shaped blocks may limit viable options.
Frontage
The frontage of the block , or how wide the block is, will directly impact accessibility and will limit design potential as well as how many dwellings you’re able to include.
Slope
The slope of the land will impact the site costs, and may dictate a split level design or require retaining walls.
Orientation of the land
Orientation of the land will influence liveability of the space for the eventual owners of the properties, but it also affects the planning stage for your multi-unit development. Orientation will impact the buildings’ energy ratings and therefore have an influence on building design, and location on the lot.
Neighbouring properties
Building regulations specify what you can build within certain distances of neighbouring properties. Issues here may be in relation to double storey homes overlooking, or overshadowing the neighbouring home/s.
Easements and verge items
Easements are where the property has an underground service, such as sewer, that cannot be built over. This reduces the usability of the block of land and will limit the building design options available.
Verge items are things like power poles and fire hydrants. You’ll need to keep these in mind when planning your development design and access points.
Overlays
Planning overlays or caveats can specify exactly what can and cannot be built in a certain area. This will include development numbers, size, design and even building materials and landscaping options. Ensure you check with your local council for any overlays of caveats prior to investing.
What does the right block of land for a property development look like?
You want the right sized block, in an upcoming or desirable neighbourhood, without restrictive elements, and with good amenities in order to get the most from your investment. If any of the above considerations are less than optimal, the parcel of land’s development potential and profitability are compromised and the project may not be worth investing in.
These complex controls can prove as barriers to many would be first time investors, as interested parties dip their toes in with the proper due diligence, may get scared off. By engaging an experienced design and construct team with multi-unit development experience however, the entire planning process can be taken care of. A quality team will listen to you, and be able to speak your language. This can make all the difference, and we often see our Melbourne clients go from feeling overwhelmed to being informed and confident after our initial meeting.
If you’d like some advice choosing the right parcel of land for your Melbourne multi-unit development project, give the friendly team at delcon a call on 1800 335 266 for a free, no obligation discussion.