Have you ever heard of land so small, it can barely fit a cat? Well, in Sydney, there’s a unique situation brewing that’s raising eyebrows and property prices to dizzying heights.
Imagine this – compact parcels of land complete with active electrical substations selling for over $1 million! Yes, you read that right. These minuscule blocks are causing quite a stir among potential buyers ranging from first-time homeowners to seasoned builders looking to capitalize on the scarcity of land in Australia’s most expensive housing market.
“The high prices for the tiny blocks… is yet another sign of Sydney’s housing shortage,”
remarked Tim Lawless, a renowned research director. He labeled the trend as “a sad indictment” on the city’s lack of available developable land strategically located for residential purposes.
In recent transactions, two such blocks fetched an eye-watering $1.8 million and $1.43 million each, surpassing even the city’s median house price estimates. Real estate agent Simon Harrison expressed his astonishment at the unprecedented demand by stating,
“In 25 years, I’ve never sold anything like it in my career.”
The energy company responsible for these unique properties mentioned its intention to sell off 21 land parcels across Sydney due to its reduced need for such extensive blocks. This decision has triggered fierce competition among various buyer segments keen on seizing this rare opportunity.
Most of these blocks are significantly smaller than your average house site and come with their own set of challenges. Take for instance a mere 240 sq metre block that commanded an $800,000 price tag or a tiny 50 sq metre plot offered at $300,000 which includes a quarter dedicated to the power box and hosts only a small street corner shed overshadowed by a lone frangipani tree.
Despite their size constraints and unusual features like power boxes taking up crucial space, these sites have piqued interest from developers willing to explore innovative solutions within limited parameters.
“There is no reason we can’t build smaller homes…in reasonably compact ways,”
shared Michael Fotheringham from Ahuri. However, he cautioned that although these petite plots could potentially aid in increasing housing density, their exorbitant costs might hinder experiments with more affordable housing options like tiny homes.
Residents like Ed Blakely from Mosman see these substation sites not just as real estate investments but also as opportunities for creative urban planning solutions. From envisioning government-owned amenities to rental studios or Airbnb units, there is no shortage of ideas swirling around these unconventional properties.
As urban spaces continue to evolve and adapt to growing populations and changing needs, stories like these shed light on the creativity and resourcefulness required in navigating today’s dynamic real estate landscape.
