The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Urban Leader Awards Logos RGB White
NOMINATIONS CLOSE SEPTEMBER 12 RECOGNISING THE INDIVIDUALS BEHIND THE PROJECTS
NOMINATIONS CLOSING SEPTEMBER 12 URBAN LEADER AWARDS
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
ResidentialStaff WriterThu 26 Mar 15

Lucrative Permit Approved Sites Swiftly Snapped Up By Investors Desperate For An Edge

M

Exorbitant demand across Melbourne for properties with pre-approved planning permits has revealed the evolution of a precious new commodity in an already booming property marketplace.

Following the recent sales of a number of high profile sites by hotly contested local and international investors, industry sources are pointing toward a new trend in the residential market. Developers, seeking to bypass sluggish council processes and regulations, are choosing instead to set their sights on land parcels with existing development approval with a view to commencing construction of projects immediately.

In the past five years alone, the marketplace has experienced a dramatic shift in its consideration of conventional residential development mechanisms. Where previously developers sought premium land acquisitions prior to applying to council for suitable permits, contemporary rationale has shifted the onus toward sourcing land parcels with current permits with the aim of expediting the council’s stagnant processing.

Not only are permit approved properties in high demand, but more importantly, they are particularly difficult to source. It is common knowledge amongst developers that in the instances that properties with existing development permits do surface, a premium sale price will be expected. However, this is not deterring developers that are willing to purchase these permit approved properties with the objective of minimising their risk through avoiding council lead times of up to 2-3 years whilst subsequently reducing their holding costs, which often, can be a large portion of the projected profit for a project.

Nick Materia, founder of property portal 

Permit Ready suggests there has been a significant increase in permit approved properties for sale within the last 12 months.

“Property developers these days conduct a number of risk minimisation methods when evaluating their development projects, and with land values in their current state, they cannot afford to fight with council and possibly VCAT for in some case, up to three years. It is simply an unviable business model," Mr Materia said.

“Subsequently, they are now, more than ever, inclined to pay a premium for these permit approved properties as it not only reduces their risk within the market, but they can immediately commence pre-sales on their projects prior to even obtaining possession of the site.”

Selling or buying a property that contains an existing planning approval is a reputable strategy which effectively produces beneficial outcomes for both parties.

Here’s why:

For buyers, the advantages of a property with planning approval include:- A reduction in the time and associated costs of applying and obtaining planning approval. (This can be a major benefit if there are any planning regulations, if the site has any complex constraints, or if there are difficult neighbours who could potentially object the planned development).
- Having a clear and detailed account of the conditions of the planning permit, including infrastructure charges.
- A shorter wait until building works can begin.

For sellers, the advantages of selling a property with planning approval include:- The likelihood of selling the property for significantly more money.
- Having plenty of time to sell the improved property since a planning permit is usually valid for up to four years (two years to begin the build and then a further two years to complete it).

Evidently, there is now genuine competition between both local and international buyers for the purchase of these exclusive permit approved properties.

For more details you can now browse permit approved properties for sale at

www.permitready.com.au

  

ResidentialIndustrialAustraliaPlanningPlanningSector
AUTHOR
Staff Writer
"TheUrbanDeveloper.com is committed to delivering the latest news, reviews, opinions and insights into the best of urban development from Australia and around the world. "
More articles by this author
ADVERTISEMENT
TOP STORIES
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
Woolloongabba Precinct Vulture St
Exclusive

Brisbane Developer in Cross River Rail Compensation Tussle

Clare Burnett
4 Min
The Mondrian Gold Coast hotel's food and beverage is driving profits
Exclusive

Touch, Taste, Theatre: What’s Driving Mondrian’s Success

Renee McKeown
6 Min
Fortis’ display suites are designed as brand environments first, with tactile details and curated design to build buyer confidence before project specifics.
Exclusive

Relevant or Redundant: Will Tech Kill Display Suites?

Vanessa Croll
7 Min
Exclusive

Missing Heart: Why The Gold Coast Needs a CBD

Phil Bartsch
7 Min
View All >
South Melbourne social housing precinct
Affordable & Social Housing

South Melbourne Housing Precinct Revamp Takes Next Step

Leon Della Bosca
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
The property giant’s strategic shift to higher density is in full flight as details of two landmark projects are made pu…
LATEST
South Melbourne social housing precinct
Affordable & Social Housing

South Melbourne Housing Precinct Revamp Takes Next Step

Leon Della Bosca
2 Min
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
3 Min
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
The Adelaide purpose built student accommodation market is about to increase by 1058 beds with the State Commission Assessment Panel supporting two towers in the making.
Student Housing

Highrise Approvals Add 1000-Plus PBSA Beds in Adelaide

Renee McKeown
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/lucrative-permit-approved-sites-swiftly-snapped-investors-desperate-edge