Sydney Proposes Rezoning for High-Density Housing! — Sydney Auction Clearance Rate at 68%

Week’s Key Focus

The New South Wales government recently made headlines with its announcement to rezone specific areas to foster increased housing density. In a strategic move disclosed last December, the Minns administration pinpointed 39 locales across the Greater Sydney vicinity, focusing on transit and urban centers, aimed at accommodating denser residential formats like apartments. These targeted areas are strategically located near subway and train stations, highlighting a push towards transit-oriented development.

In light of these developments, property law expert Cathy Sherry from Macquarie University, along with Stephen Brell, the chairman of the New South Wales Strata Community Association, have provided crucial advice for homeowners potentially facing buyout propositions from developers. They underscored a pivotal distinction: owners not part of a strata scheme cannot be compelled to sell their property. While the government holds the power for compulsory acquisitions, this mechanism doesn’t apply in the current market-driven context.

For those within strata-managed properties, a collective decision-making process is required. Owners must convene, passing a special resolution with at least 75% approval, to proceed with selling to developers. This initiates the formation of a strata renewal committee, which then engages professionals like valuers, lawyers, and strata managers to facilitate the sale process. Importantly, if any of the dissenting 25% of owners choose to resist the sale, they have the right to contest through the Land and Environment Court, with developers bearing the cost of legal fees and expenses. This provision acts as a safeguard for owners reluctant to sell.

Sherry advises standalone homeowners approached with developer buyouts to seek solidarity with neighbors and consult with legal experts familiar in real estate development. This strategy helps mitigate the pressure and potential disadvantages of navigating these proposals alone. Moreover, securing professional valuation and real estate advice is crucial to ensuring fair compensation, preventing underestimation of property values.

As Sydney embarks on this rezoning initiative, homeowners are encouraged to stay informed, seek expert counsel, and collaboratively engage with their community. This approach not only protects their interests but also positions them to advantageously navigate the opportunities arising from urban redevelopment and densification efforts.

Auction Results Last Week

Sydney: 1,004 properties were auctioned, with 635 auction results reported. Of these, 434 properties were sold, achieving a clearance rate of 68%. The total auction value was AUD 494,577,197, with a median house price of AUD 1,440,000.
Melbourne: 1,263 properties went to auction, with 939 auction results reported. Out of these, 598 properties were sold, resulting in a clearance rate of 64%. The total auction value was AUD 492,627,024, with a median house price of AUD 1,080,000.