Property flipping has always been a key wealth driver for Property Developers and Investors, however since the resurgence of the development seen there has been an increase in flipping and selling for huge profits.
Some developers are opting to sell their developments once receiving their permit as their profit margins would only slightly increase if they were to build the development, consequently reducing the risk, time and effort to complete the project. Additionally, some instances developers would genuinely intend to build the property, however are approached with a good offer that is hard to refuse.
On the other hand, these lucrative permitted development sites are swiftly being snapped up by investors who prefer to bypass council delays.
Following the recent sale of a number of high profile sites, industry sources are pointing towards a new trend in the property market. Not only are permit approved properties in high demand, but more importantly they have in the past been practically difficult to source due to such low volumes of them, until now.
The marketplace has experienced a dramatic shift in its consideration of conventional residential development purchasing.
Some recent permit approved properties that have changed hands in recent years include:
64 A’beckett Street, Melbourne
Purchased in 2009 for $11m
Sold in 2015 for $27m
555 Collins Street, Melbourne
Purchased in 2003 for $38m
Sold in 2014 for $78m
464 Collins Street, Melbourne
Purchased for 10.5m
Sold for $30m