http://www.investmenthouse.com.au/newsletters/2007_June/Web_Page.htm
Brisbane City Council Moves the Goal Posts regarding Small Lot Subdivision
Recently a little known but significant change has been made to Brisbane's small lot development regulations. These changes relate to the minimum size of small lots and (it would seem to many) have been introduced by stealth. These changes hold the potential for some to make a lot of money and others to lose equity - particularly if they are unaware of the impact of the changes.
So what are the changes?
Up until recently, the minimum size for a small lot in Brisbane was 400m2. It’s been that way for a long time – in fact most of Brisbane’s older suburbs hold a myriad of these “16 perch” blocks. Generally, they are 10m wide and 40m deep, though there are also square blocks measuring 20m by 20m. Many house sites comprise two such lots to make up a “32 perch” allotment (809m2).
Effective from 1st January, 2007 – the minimum “low density residential” lot size was increased by Brisbane City Council to 450m2 within the Demolition Control Precinct.
How will it affect land owners?
The impact could be quite substantial. Many people living and buying in Brisbane’s “old and inner ring” suburbs are very aware of the development potential of these “32 perch” blocks. These sites carry a price premium because of the potential for the site to be developed into two “16 perch” lots (and for two houses to be constructed on the site). But for many such owners, that is all about to change. Many sites that could be developed under the old regulations will not any longer be able to be developed under the new rules.
The looming tragedy is most people don’t know about the changes. And it could very likely cost them a lot of money.
Yet it doesn’t apply to everyone. In cases where a house is sitting on two existing 400m2 lots and the house was built post war (and can therefore be demolished), the development potential for the site remains intact. So the new rules will impact upon single lot sites which are larger than 800m2 but less than 900m2 within a Demolition Control Precinct. Plus sites offering subdivision potential where the existing house does not need to be moved (such as corner “cut-off” sites).
The Investment House Research Team undertook a preliminary assessment in the suburb of Camp Hill. They found approximately 33 home owners would be likely to be caught by the changed rules. This could well be reflected across more suburbs.
So what can owners do about it?
The best way for owners of such lots to protect their interests is to apply for a development approval. That way they protect the future potential to develop the site. There is a provision within the Integrated Planning Act for existing landowners to be assessed under the superseded regulations for a period of two years. So owners have about 18 months left before this window closes.
Our Research Team are able to provide further details on these changes and will be happy to explain how owners can protect their interest. If you feel you may be one of those owners who will be affected by the new regulation please email
[email protected] to discuss the matter further. If you know anyone else who may be in this situation, feel free to pass this information on.