Login
iscover
Population growth is creating a demand for high-density housing in overpopulated areas. In this market, amalgamation is on the rise and councils are become more lenient with rezoning. One network predicts this growing trend could translate into big successes for agents.
According to a recent research paper released by LJ Hooker, amalgamation is a fast-growing trend.
The paper stated that growing populations in areas already served by infrastructure are making amalgamation a very lucrative business for landowners.
Vincent Siciliano from LJ Hooker Commercial Perth recently oversaw the sale of 11 lots owned by six individuals for $90 million.
“Large-scale development sites are in limited supply across Perth. These six landowners took advantage of this by coming together to gain government approval to rezone their land, from rural to urban, then marketing the site as a single lot,” said Mr Siciliano.
The amalgamation produced one of the “largest development offerings for Perth” he said, which proved quite tempting for buyers, resulting in interest from both domestic and offshore investors and driving the price up.
Residential landowners could also make a great profit from partnering with their neighbours and selling the properties as one “super-lot”, especially in central areas or areas where there is a lot of developer interest.
Amalgamation will not only result in bigger sales for agents, it will also provide more clients and give agents a chance to increase their reputation in the area. Large amalgamated sales often generate a lot of buzz and agents who keep their finger on the pulse of developers in their area can see a lot of success through this trend.
