Over the past decades, advances in technology have brought properties more quickly to the market, thereby increasing competition among buyers seeking good development sites. Despite these advances, many fundamentals still apply in selecting a potential development site.

Criteria for a residential development site are based on many common factors, whereas for a commercial site, another set of rules apply. More emphasis is placed on regional studies because the demographic catchment area of commercial sites is broader than residential sites. The selection of a residential site is more localised, as is described below.

Location

Securing the right location is critical to the success of a development. An experienced property consultant will have a good idea of the right location for development and the ability to identify which areas require particular expertise to assist in the site’s evaluation. Geelong Property Consulting (GPC) focuses its research on the specific geographical location that demonstrates growth potential, the right demographics, high occupancies and high demand for the specific development type.

Zoning

GPC believes the potential development site should be zoned appropriately or have the potential to be rezoned to the client’s requirements. Development viability can be significantly affected by delays in rezoning or the assessment for a planning application. GPC has expertise in planning schemes; contact us, we are happy to help.

Size and shape of site

When viewing a potential development site, you should verify the total number of square meters of the property to ensure the area fits the needs of your development proposal together with the density and parking requirements.

GPC can help you check following regulations;

Coverage: This relates to the percentage of ground floor area relative to the total site area.

Plot Ratio: The bulk ratio or floor space index is the percentage of the allowable building area relative to the total site area.

Parking: Each building type and council will have its own set of rules regarding the amount of vehicular parking required.

Building setbacks: Also known as building lines, the street setbacks may be different to the side or the rear of the site, so checking with your local council is recommended.

Easement: There could be special restrictions on the specific site, such as sewerage or storm water easements.

Site Characteristics

Prior to purchasing a development site, its physical charateristics should be thoroughly reviewed, as they could affect the development and building cost. Areas should be analysied included following;

Topography: Flat sites are preferable as significant slopes will add costs.

Soil conditions: The nature and bearing capacity of the subsoil of a site is very important. Highly reactive soil may add to the cost of the site preparation.

Vegetation: Extensive vegetation on the site will increase the cost, but this cost can not be avoided in most cases. It can also have a positive impact on the development, adding to its character.

Traffic Flow

A study of the street patterns and traffic is important to a development, as the success of the development will depend in part on the smooth flow of traffic to and from the site.

Access: Determine the possibilities of the site’s entrance and exit. For a corner site, consider whether entrances on both streets would be beneficial.

The traffic volume: High traffic volumes are suitable for retail developments that depend on customers visiting and buying goods but may not suit residential sites where residents would prefer less traffic and lower noise levels.

Traffic Flow: The time and direction of traffic flows should be analysed.

Utilities

The supply of telephone, water and sewerage, electricity, gas and internet lines is essential for all types of sites. Geelong Property Consulting can help you with utility connections before the construction phase.

Public Transport

Proximity to the public transport systems benefits both residential and commercial developments. Greater Geelong (the Geelong Council) has developed an integrated, comprehensive public transport plan, which helps residential and commercial developments. For more information, click here.

Rates and taxes

Proximity to the public transport systems benefits both residential and commercial developments. Greater Geelong (the Geelong Council) has developed an integrated, comprehensive public transport plan, which helps residential and commercial developments. For more information, click here. Property rates usually are accessed when the property changes hands. This includes stamp duty and any other state or local government taxes, such as council rates and land tax taxes. The State Revenue Office of Victoria’s website has ample information about the taxes. For the Council Rates, the data can be obtained by contacting Geelong Council or conveyancing agent.

Developer’s contribution

With greater urbanisation creating increased densities in the suburbs close to CBD, some local councils impose a developer’s contribution levy. Geelong Council sets the developer contributions, which are calculated and indexed each year to ensure these levys keep pace with the escalating cost of these projects. For more information, please click here.

Social infrastructures

A residential development site close to social infrastructures such as schools, community centres, medical facilities, and libraries has more demand, therefore, more value. Our latest project, 160 Cox Road Corio 3214, is near all the essential social infrastructure.

Environmental issues

Environmentally impacted areas should be evaluated to find out if the problem could affect the value of your development. Geelong Property Consulting (GPC) could assist you in this regard.

Price of site

Having taken all the factors into consideration you need to determine whether the price of the land is justified for your intended development. The department of planning, applies a minimum garden requirement for the Neighbourhood Residential Zone and General Residential Zone. For more information please click here, alternatively GPC is happy to assit you. Usually the price of the land can be broken down into rate per square meter, but to a developer its true value is how much building can be efficiently constructed on the site.

To get a free site selection criteria checklist and site selection matrix, please email; yasir@geelongpropertyconsulting.com.