The seller of this off-market property has been smashed, at least that is the blunt way to put it. Initially things were looking rosy for them, with approval granted for 15 apartments at the height of developers getting away with over-the-top non-compliant approvals. Unfortunately the unit market had turned so it wasn’t feasible for him to develop, and as units were on the nose he was unable to on-sell the site. He was chasing $1.2 to $1.3m at the time. The approval has now lapsed, with and extension to the approval refused by council, which is a shame as the unit market is picking up now and the same approval certainly isn’t close to being possible to achieve again. So far he has copped a brutal tackle from a midsized forward but the big hit was still to come. Whilst all of this was happening, benefits associated with fronting an arterial road were taken away, council’s definition of height changed, car parking rates increased, required landscaping increased and allowable site cover came down. This site has been smashed! And if the hits weren’t big enough already, the site is vacant so there’s been no holding income since he purchased it in 2015! So, you may be asking yourself why we are considering it? We believe there is merit in this site and it starts with the seller acknowledging all of the above and setting a revised sale price of $1m. And secondly we’re considering a change of tact with 7 townhouses the proposed outcome. Units have become too difficult for this site due to the rule changes, but it hasn’t affected townhouses quite so much. This seller is retired and needs to move on. Buyers at $1m for a proposed equity gain of 21 to 24%.