In a bustling city's property market, some changes could benefit homeowners.

A recent policy shift is transforming certain residential areas into prime spots for developers, aiming to boost apartment growth near key amenities.

This move will reshape local landscapes and increase demand for nearby properties.

Industry experts have described the policy as 'real gold—not fool's gold'. It is creating a buzz in the suburbs, from Rose Bay in the east to Mosman on the north shore.

Homeowners in these areas are being approached with offers that are too lucrative to ignore.

The reason is that their properties lie near 171 nominated sites around NSW, making them prime targets for developers looking to capitalize on the new regulations.

Large sums of money are being offered to Sydney homeowners by developers due to a new policy encouraging apartment development near shops and transport. Credit: zetter / iStock

'It is real gold and not fool’s gold if you’ve got an unrenovated house on a large block of land,' says Ric Serrao, a prominent eastern suburbs agent.

The potential for profit is staggering, with some properties doubling in value almost overnight.

In one instance, a homeowner in Sydney's east who struggled to sell their property for $8 million over nine months suddenly sealed the deal at an astonishing $16 million.

The policy, which took effect on 28 February, overrides existing council regulations concerning height and floor space ratio for housing development.

This means that even if a new development complies with the new rules, local councils have little power to reject it.

As a result, the construction of six-story apartment blocks could transform areas like Balmoral Beach, significantly altering the local landscape.

The impact of these changes is already being felt. Five homeowners near the Rose Bay Town Centre have collectively sold their properties for $75 million to an apartment developer.

Alex Lyons and Ric Serrao of Raine and Horne Double Bay negotiated an average of $15 million per block.

The purchaser, Fortis Property Group, confirmed that the new housing policy motivated the acquisition.

The properties involved in the deal, including a three-bedroom house previously operated as the Rose Bay Family Medical Centre, varied in size but were generally unrenovated and on large plots of land.

Some had not changed hands since the 1990s, with previous sale prices a fraction of what they commanded in this recent windfall.

However, not everyone is poised to benefit from this policy. Serrao points out that there will be winners and losers, with the latter being those homeowners whose properties fall just outside the 800-meter radius of the designated sites.

Additionally, residents living near the new development sites may face increased traffic and the associated challenges.

The NSW Government's commitment to providing a variety of well-designed and sustainable homes in convenient locations is clear.

With the new policy in place, property values are expected to fluctuate, and homeowners across the state could negotiate profitable deals with developers.

This news could be particularly relevant for our readers at the Seniors Discount Club.

Whether you're considering downsizing or relocating or are simply curious about the value of your property, it's worth keeping an eye on how these developments unfold.

If you're near one of the nominated sites, you might be sitting on a potential gold mine.

Key Takeaways

• Sydney homeowners are being offered large sums of money by developers to sell their homes due to a new government policy that encourages apartment development near shops and transport.
• The NSW State Government Low and Mid-Rise Housing Policy could potentially double the value of homes, with reports of sales skyrocketing from $8 million to $16 million in one case.
• The policy overrules existing council regulations regarding height and floor space ratio for housing development, which has stirred concerns among local communities about changes to the landscape and increased traffic.
• A $75 million property deal in Rose Bay, negotiated by Alex Lyons and Ric Serrao of Raine and Horne Double Bay, exemplifies the financial opportunities available to homeowners under the new housing policy.

Have developers approached you, or do you have concerns about how these changes might affect your community? Share your experiences and opinions in the comments below.

 

[bluesbrother]

Uh-oh, there go the neighbourhoods. I often think the word 'development' is interchangeable with 'destruction' these days.

 

[DLHM]

I’m not in Sydney, but developers bought my place as well as others on the road I previously lived. I know how it feels to be living in my “forever home” (no such thing), only to be told of the decisions made to build multi storey apartment buildings.

If I’d held out, I was informed the plans for apartment buildings were going ahead anyway.
I was paid more than “market value”, but not a huge amount. I’d have preferred to stay where I was.

 

[marni]

My family had to relocate when the Council decided our neighbourhood would become an industrial area. Very little compensation as the rates spiralled and unaffordable for pensioners. My father built the house wall by wall. It was a very hard time for all of us.