If you’re looking to get into property development, then you’re going to need to know how to find development sites. There are a lot of factors to consider when choosing a development site, and it can be difficult to know where to start. That’s why we’ve developed the 6S system for finding property. In this blog post, we’ll take you through each step of the system so that you can start finding development sites quickly!
1. Size of the development site
There are a number of factors to consider when determining the size of a development site.
- The first is the potential sale value. Will the finished project generate the desired return on investment?
- The second is the feasibility of the project. Does the site have the right size to accommodate the proposed development?
- The third is the potential for scaling up. A site may appear to be suitable for a dual occupancy development, but with some creative solutions, the site may be able to accomodate a 3-townhouses development.
2. Shape of the land
Is the site easy to work with? Will it require excessive earthworks or other remediation? Look for sites that are workable for ease of design and construction. This will make the design process easier and save you time and money.
3. Setting of the location
The setting of a development site is critical. You want to find a site that is in an area that is growing or has potential for growth. Look for sites that are near major transportation routes, retail centres, or other amenities. What about the zoning of the site? Is it zoned for residential, commercial or industrial use?
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- Zone, overlay & setback checks
- Dwelling capacity estimation
- Council-specific red flags
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Once you have found a suitable location, you need to assess the surrounding precedence. What are the neighbouring properties being used for? Are there any similar developments in the area? This means looking at the surrounding buildings and seeing if they are of a similar height, style, and scale. If the surrounding buildings are all three-townhouses developments, then it is likely that your development site will be too.
4. Setbacks requirements
Next, you need to consider the setbacks of the property. This is the minimum distance that a building must be from the property boundary. Once you’ve considered the setbacks, you need to look at the difference between a corner site and a site within a street. A corner site will usually have more development potential than a site within a street.
5. Standards of new building and planning application
Understanding the building and planning standards required for the finished project is an important consideration when you’re looking for development sites. You need to make sure that the site you choose is able to accommodate the finished project, in terms of both the physical structure and the necessary permits and approvals. This includes things like building height, massing, fence, car parking requirements, and number of bedrooms.
6. Sales history of the suburb
One way to find profitable development sites is to look at recent median property price in the area. This will give you an idea of what kind of prices you can expect to get for your units. To get an accurate picture, you should look at sales data for similar properties in the same area.
Another indicator to look at is the yield study. This will tell you what kind of return on investment you can expect from the development. If the yield is high, then it may be worth pursuing.
Finally, it’s important to have a pre-sale plan in place before you start developing the site. This will ensure that you sell the units at a price that covers all the development cost.
Wrapping Up
The 6S system for finding profitable development sites is a simple and effective way to identify potential sites in a short time. By considering the Size, Shape, Setting, Setbacks, Standards and Sales of a site, you can quickly and easily assess its development potential. Our clients have successfully identified many potential development sites using this proven method. If you would like more information on how to find profitable development sites, or would like a free consultation, please contact SQM Architects.
