October 9, 2014 Hodges Real Estate Information
Few things polarise the masses faster than residential zone changes that dictate what can and can’t be developed in the city’s suburbs.
Since 1 July this year, Plan Melbourne has been in place. The 220-page document outlines the new metropolitan planning strategy designed to manage Melbourne’s growth beyond 2050. Some of the major urban renewal areas outlined in the plan include Fishermans Bend, E-Gate, Arden-Macaulay and key rail corridors.
The key talking point of the plan though has been its three new residential land zones, the Neighbourhood Residential Zone (NRZ), the General Residential Zone (GRZ) and the Residential Growth Zone (RGZ).
According to the Victorian government, “the new residential zones give councils a way to protect neighbourhoods with special character and heritage value…by directing housing growth to areas around main roads, shopping centres and transport hubs.”
Depending on where you live and whether you own property for investment purposes or not, there have been a variety of responses to the plan’s new zones. For some though, it has provided a huge windfall. According to Hodges Real Estate Bentleigh agent, Frank Ruffo, there’s been a flurry of activity in the southeast suburbs, where some property owners have banded together and sold for a premium to land-starved developers. Frank says that in November 2013, three neighbours sold together for $1.2 million above their joint asking price; an additional $400,000 per seller.
It could be worth finding out how the new zones affect your suburb.