A consortium of nearly 90 homeowners in the northwest of Sydney hope to leverage their combined bargaining power to better exploit the sales opportunities created by the potential rezoning of their district.
The Castle Hill Showground Priority Precinct Plan recently released by the NSW Government will pave the way for the development of townhouse dwellings on the nine-hectare site that is situated to the south of the proposed Showground station.
The plan envisages the conversion of the site into a single master planned community bearing the picturesque name of Orange Blossom Heights.
Residents believe they can obtain a better deal, however, if the site is rezoned for the development of mid-rise apartments instead of townhouses, given that properties within the Showground precinct already zoned for such purposes are currently commanding prices of between $3.5 to $4 million.
This compares very favourably to an estimated price tag of $1.6 million for residential properties that are sold individually for conversion into townhouses.
“The economics of townhouses just will not work,” said local resident John Allen to The Daily Telegraph. “The real value is if we can do it together we have an opportunity to create almost a green field site.”
The group of nearly 90 homeowners have thus opted to engage in the joint sale of a massive “mega lot” consisting of all of their conjoined properties, which will give them greater clout when lobbying government for adjustments to zoning restrictions, as well as create a more enticing opportunity for major developers.
The group have already executed a Memorandum of Understanding as well as a privacy agreement in order to cement their position.
The mega lot created by the proposed combination of the Castle Hill properties is well suited to the creation of mid-rise apartments, and will include 1.5 hectares for potential conversion into parkland or a school.
The sale would be a record breaker for the Sydney real estate sector by a considerable margin, with a total price of as high as $360 million.
The joint sale of combined properties for the purpose of leveraging rezoning opportunities has become increasingly common across Sydney, with over 30 arrangements involving more than three houses currently on the market.