Love thy neighbours – unlock the potential of property development partnerships
Unlocking the true potential of your property could soon be as simple as borrowing a cup of sugar.
As part of the WA Government’s quest to promote higher density living throughout the state, new regulations are set to be embraced by metro and regional councils that would open the door for neighbours to merge their lots when selling.
Referred to as ‘split coding’, these changes could have big ramifications – and not just on back pockets either. Split coding has the potential to shape how we live in the future.
What is split coding?
Split coding refers to a regulation which would allow higher density when neighbours amalgamate their lots to sell their properties, which could result in a better sale price for the neighbours. The joining of their lots would make their properties more attractive to developers as it is more likely to have a more attractive “r-code”.
Basically, most residential areas have an ‘R-code’, which specifies the minimum and average lot sizes permitted. The idea is to control how a piece of land can be developed.
As a guide, let’s say your property is 850sqm, and is coded R25.
The R25 code has an average lot size requirement of 350sqm.
850/350 = 2.4
Total number of grouped dwellings permitted in this example= 2
The above example shows the a possible outcome for your land if it were zoned at R25, but keep in mind that all councils have their own rules and regulations in relation to r-codes and zoning so it is always best to check with them first.
In some councils, owners of land with split residential density coding may be permitted to subdivide and/or develop if certain requirements can be met.
Benefits of split coding
Similar regulations have been applied in the eastern states and are proving very popular. If you’re thinking of selling/subdividing your property, there is obviously the carrot of added value that comes from knocking over the fence. The ability to increase the R-coding on the joined land (and hence develop more dwellings), will open the door for you to get more from your subdivision plans.
For developers, it means more space to take on bigger, more integrated developments. This is how split coding can change how we live. For decades, Perth has become a victim of urban sprawl, with heavy reliance on cars to get around. The negative effects of this include high pollution and traffic congestion.
With split coding, the quality and diversity of dwellings developers are able to build in prime locations will rise dramatically. By encouraging land infill in areas near commercial, community and public transport facilities, higher density living encourages more sustainable travel modes, like training, cycling and walking. And with more people in the area, shops and businesses are likely to flourish.
Summit Projects – expert land developers (Perth)
Seeing as some councils in Perth are considering introducing split coding regulations, you may want to talk to your neighbour about any opportunities. Then get on the phone and call Summit Projects.
When it comes to successful property investments, the Summit development team knows how to get the most out of your block, including strata developments (Perth).
Call Summit Projects today to discuss your property development (Perth) using Summit’s property development calculator.
Disclaimer: The information within this article is general information only and it does not constitute advice or recommendation. It does not take into account your financial situation, investment objectives or personal circumstances. Before making a decision about developing your property, you should seek independent financial, legal and taxation advice.