Emerging Property Trend in Australia: Neighbourhoods Banding Together for High-Value Sales
In an intriguing shift in the Australian real estate landscape, homeowners are increasingly opting to sell their properties in collective deals, often generating significantly higher profits. This trend is especially noticeable in North Strathfield, Sydney, where a group of six houses on Mena Street is being marketed as a combined site for an estimated $20 million.
Michael Murphy, a real estate agent with McGrath Strathfield, is facilitating this transaction and highlighted that recent changes in zoning laws have provided homeowners with lucrative opportunities. According to Murphy, the owners of these homes were receptive when approached about the potential of joining forces for a sales strategy.
Notably, a home located nearby sold for nearly $2.2 million, which raises the possibility that individual sales could yield higher returns depending on market interest. However, selling collaboratively could see each household in the group earn around $3.3 million, a significant increase.
This particular area falls within the New South Wales government’s Transport Oriented Development (TOD) Program, which aims to boost housing availability near new transport hubs. With plans for a new metro station nearby, the rezoning allows for the development of higher-density housing projects.
The trend of neighbours pooling their properties isn’t limited to North Strathfield. Another prospective sale in the same vicinity involves 16 homes spanning three streets. Similar initiatives have occurred in the past, such as a collective sale of 25 properties in Castle Hill, which sought a staggering $100 million back in 2016. In that deal, homeowners saw potential earnings of approximately $4 million each.
John McGrath of McGrath Real Estate commented on the overarching benefits of such "megalot" deals, suggesting that they serve the dual purpose of addressing the rising demand for medium to high-density living spaces, while aligning with the lifestyle choices of many residents preferring apartment living over traditional houses.
Murphy elaborated on the unique nature of these deals. While some neighbourly collaborations are initiated by homeowners themselves, real estate agents also play a crucial role in convening groups. Additionally, developers sometimes approach homeowners directly to gauge interest in collective selling.
The trend is particularly advantageous for homeowners with larger, original-style properties, who stand to benefit significantly if they opt for a collective sale. In Sydney alone, 171 areas have recently been rezoned to facilitate these mega property deals within proximity to town centres and train stations.
Murphy advises homeowners residing in these newly rezoned areas to consult with town planners or real estate professionals to assess how the value of their land may have changed as a result of the revised regulations. Each owner’s situation is unique, and they must consider what arrangement is best suited to their needs.
However, it’s essential to note that selling collectively comes with its challenges. The settlement period for group sales can be notably longer, typically ranging from six months to two years, compared to the standard six-week timeframe for individual transactions. This prolonged process can result from the complexities involved in coordinating multiple parties and satisfying developer requirements.
In conclusion, as urban landscapes evolve and housing demands shift, collective property sales represent a growing opportunity for Australian homeowners to maximise their financial returns. Through strategic collaboration, these "megalot" sales offer a promising avenue for homeowners, developers, and the community in addressing housing needs in proximity to developing transport hubs.
For homeowners intrigued by this trend, exploring these collective sales could align their financial aspirations with the growing demand for high-density living options in urban areas.
