Developers may already be eyeing the opportunity to snap up properties in prime locations, following the revelation of plans to amend planning controls near train stations around Wollongong.
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A NSW government housing plan was accidentally published online on Tuesday, which identified the rezoning of land around train stations to allow for increased residential density.
For the Illawarra that means increased development, likely including high-rises, around stations like North Wollongong, Dapto and Corrimal.
![North Wollongong station. Picture: Sylvia Liber North Wollongong station. Picture: Sylvia Liber](/images/transform/v1/crop/frm/nxytTGiVvgkfKtUJaBBBHD/dd4bc6b4-97fd-441c-b39b-b9eb0ef857d4.jpg/r0_0_6000_4000_w1200_h678_fmax.jpg)
"Housing is the NSW government's top priority," the government documents stated.
"We need to work together to address the housing crisis. We are working on a plan to create connected cities with well-located homes close to transport, jobs and services. This includes a greater choice of housing types in locations where people want to live."
Daniel Hastings from MMJ Real Estate Wollongong said he would be interested to see the finer details of the plans, but said the changes would impact on the demand for and marketability of properties in those areas.
"I think any property that's going to have improved redevelopment potential, it is going to have a marked improvement on those properties' values," he said. "So definitely the demand will increase.
![The redevelopment of the Corrimal Coke Works site is an example of increased density around train stations (it will have a direct link to the station at left of the image) - which has been flagged as a priority for the state government.
The redevelopment of the Corrimal Coke Works site is an example of increased density around train stations (it will have a direct link to the station at left of the image) - which has been flagged as a priority for the state government.](/images/transform/v1/crop/frm/nxytTGiVvgkfKtUJaBBBHD/bad9bbc9-0ba5-4d08-8730-442a0b419ce4.jpg/r0_0_1029_678_w1200_h678_fmax.jpg)
"It'll be interesting to get the finer details on exactly how those planning policies will be changed to gauge how much more value is likely to be achieved, but it's very clearly evident that it'll have a marked improvement on those values.
"So with those zoning changes, what floor space ratios, for example, and height limits will actually apply? Exactly how far afield is this zoning change going to occur as well?
"I think the owners in those areas will certainly be keen to see the finer details as they come through on those zoning changes. But they'll definitely improve their marketability."
So are property owners in these areas now sitting on a proverbial goldmine?
"If they start changing them to something of a high-rise nature... The normal zoning is R2, (and) if it gets to something like an R3 or an R1 type standard of zone or something comparable, then definitely, a marked improvement for those properties especially," Mr Hastings said.
He agreed the changes could also potentially open up the possibility of groups of neighbours to sell together by consolidating their blocks into a larger development site.
"Most definitely," Mr Hastings said. "And there'll certainly be direct approaches, perhaps very soon, from developers that want to jump the gun and try to secure sites even maybe only with half the information potentially.
"They're obviously going to look at those areas very closely now that the details are starting to come out."
![Herron Todd White's region director Chris McKenna. Picture: Supplied Herron Todd White's region director Chris McKenna. Picture: Supplied](/images/transform/v1/crop/frm/nxytTGiVvgkfKtUJaBBBHD/168ae8bb-252e-4bae-bf4f-bb8da6af61af.jpg/r0_0_1417_1801_w1200_h678_fmax.jpg)
Property valuation and advisory company Herron Todd White's region director Chris McKenna said planning control amendments had the potential to change the highest and best use of land.
He said if building height and floor space ratios are increased, traditional residential blocks in these areas will be able to accommodate higher yield developments such as townhouses or apartment blocks.
"If a single house site would now be able to be developed with say four townhouses, the buyer profile for the property would change," he said.
"Developers will undertake a feasibility study to ascertain the value of the land based on their project.
"Typically this far outweighs an owner occupier's value of the land. However in recent times with construction costs having increased significantly, the premium that a developer has been willing to pay for the land has been impacted."
Mr McKenna said overall, if you own a residential block of land in one of these areas and the government increases the highest and best use, there can only be a positive effect on the value.
"Depending on what the controls are amended to, there may be an instance where neighbours will benefit from amalgamating two or more residential sites and selling them together to a developer," he said.
"But exact detail of what the planning control amendments are has not been provided, so there is only speculation at this stage."
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