Since the start of 2023, we have seen a large increase in the number of people looking to buy properties on larger blocks, with a view to developing them further.
This is a trend that is being seen right across Brisbane. Sales data on realestate.com.au shows 88 properties sold for more than $1.6m in Brisbane in the past month. Most of these were larger block properties.
Interestingly the rising interest rates do not seem to be having an impact on these investor buyers.
There are two factors at play here. Firstly investors are buying these properties with an eye on splitting to block into smaller lots. The second factor is as these larger blocks get developed then the ones that remain become more and more scarce, so other investors are looking to buy and hold for the long term.
Some of our neighbouring suburbs have gone down the road of having the blocks split and the houses cut up to be fitted on the block and then thrown in one next door.
In the past year, some canny investors were able to purchase 20 Farrow St at McDowall. This property had a pool and a tennis court in the backyard. After some careful redesigning, the new owners were able to create 3 new house blocks where the tennis court was removed. The existing house was able to be retained as well.
No doubt this resulted in a handsome profit for these investors.
The larger blocks around Stafford Heights and Stafford with the post-war homes are also a big attraction. The gentrification of these suburbs has already started and will continue due to the availability of these large blocks.
Bridgeman Downs is seeing this same effect with some of the acreage lots being carved up into smaller size blocks.
So what does this mean to a property owner in the local Everton Park region?
Well if you are on a larger block, say 800sq m or larger, you will have options if you are thinking of selling, as your property may be able to be sub divided or reconstructed.
Why is that important? Simply your land (as an empty block) may be worth more than the value of the house. This can be a bit hard to get your head around but many times this is the case.
How can you know if your property may qualify for this treatment? Well, it is vital that you speak with an experienced local real estate agent. One that knows the rules that apply to your location and also the ways to best market your property. It is also handy if they know investors that may be looking for these types of properties.
Justin Hicks the principal of Hicks Real Estate has lived his entire life in McDowall so knows the areas extremely well. In fact, Hicks Real Estate has sold more properties in McDowall than any other real estate business. This knowledge and experience will make a difference to you, and not just in McDowall, but Stafford Heights, Everton Park and the local suburbs.
So if you are considering moving, then call Justin on 0422 292 268 to have a discussion about your options and benefit from his experience.