deb68

The title says it all really, does anyone please have the time to explain it to us, how we see it is if we buy a house with a block size of say 715sqm for $400000, does the 'future' rezoning area plan mean that we could divide the land and sell or is it done by law anyway?
So confused

HelenTD

There has been a push for some years to stop the urban sprawl of Perth, by increasing the density of housing, which squeezes more people into the same amount of space. The theory behind this is that the cost of infrastructure, eg sewage, roads or public transport, is too high when it services only a small amount of people in low density housing, versus the same cost for infrastructure to service a large amount of people in medium or high density housing.

When the housing is built, there are a lot more people to pay taxes, rates and utility fees – a prospect that has local councils and state government rubbing their hands in glee. Higher densities mean that there are 4 households on one block paying all those rates and fees, rather than just 1 or 2 houses on that block. Not only does it help to pay for putting in the infrastructure (which should have been there anyway), but it gives them ongoing truckloads of cash. Others usually very happy about the prospect of higher densities are builders, real estate agents and some home owners.

There are several ways of increasing residential densities, such as

1. by making new blocks of residential land smaller;
2. by allowing more dwellings to be built on new blocks;
3. by allowing more dwellings to be built on existing blocks (in-fill development); and
4. by converting non-residential land into residential land, usually at higher density (eg petrol station removed and multiple townhouses, units or similar built on the site, a brownsite development).

Each area is given a zoning number, such as R20, R30, R40, etc - that means that it's residential and that 20 dwellings are allowed per hectare for R20 - that gives a block size of approx 500 sqm (sometimes might be around 450 sqm). The higher the R number, the more residences are allowed. R60 and above would normally be units with 2 storeys or more.

When it comes to re-zoning, sometimes it goes ahead, and sometimes it doesn’t. You would need to check the situation with the local council, and do it in writing. Also contact the local ratepayers' or residents' association to gauge their feelings. If the re-zoning is only wanted by a few people, it can get turned down at council level. Alternatively, it might get passed by the local council, even if only a few people want it!

Newcomers to WA probably don’t know about zoning and such things as common property, survey strata and green titles. It would be very easy to get taken advantage of, so you're doing the right thing is considering all the angles. Real estate people - and others wanting to make mega-bucks - are not known for their scruples!

Which suburb are you looking at?

IvanM

In some areas it means you could be surrounded by 10 storey apartments. You then sell before you are made an offer you cannot refuse.

deb68

We like the look of Ocean Reef or maybe Currambine, neither have rezoning as we know it, just wondering as we looked at a couple of houses the other day and noticed that they are coming up for proposed rezoning, thanks Helen

HelenTD

Usually if rezoning is mentioned, the asking price will be higher, as there is some prospect of making some money out of it. A lot of Perth residents have made a profit - if you have building skills there's an even better margin. It's not guaranteed, though, and sometimes a bit of a risk if you buy a place where re-zoning might happen.

As IvanM mentioned, re-zoning can drastically change the character of an area. For example, you might not mind buying a property near to a row of local shops, which here in Perth tends to be single storey buildings. One local council, however, with almost no public consultation, brought in a planning rule that land with a commercial zoning, such as existing shops, can be re-developed into 4 storeys, with shops on the ground level, and 3 storeys of residential dwellings above. So, where perhaps you were happy with one storey shops nearby, would you be quite so happy with 4 storeys of shops and dwellings in its place? Another example: if you buy in a nice, quiet family area, with a park around the corner, how would you feel if the next street got its zoning changed and instead of a total of 8 houses on that street, the owners were allowed to turn that into 30 dwellings? That’s 4 times the number of cars, people, noise, etc, than you thought you were getting.

IvanM

Around here the labour state government was changing the zoning despite the opposition from the council. The previous Labour planning minister Tony Kelly is now in front of ICAC along with the usual array of colourful developers.

deb68

Great replies guys, just makes us now think a little harder and think more carefully prior to signing anything, not that we have but it is good food for thought, thanks again.

HelenTD

Here in WA, both the ALP and Lib/Nat state governments have changed zonings even when the local population were against it. Same goes for local councils. Some suburbs seem to get protection, but another suburb very similar in characteristics does not. But then, it makes a big difference (apparently) if a lot of state MPs, rich people and the WA Premier live in the first suburb, but not the second.

IvanM

We will find out soon how corrupt the coalition is.

HelenTD

Which coalition do you mean, IvanM?

IvanM

NSW state government.