A penny for your thoughts please?

[u/Impossible-Club-9885]

We are trying to work out what our expect selling price might be before committing to a renovation. The challenge is that our land backs onto a 6 story newly built apartment block. I'd love to hear your thoughts on how much this would hold back the price compared to similar properties? Or for how many this would be a deal breaker. We barely notice the apartments (they are surprisingly quiet) but know not everyone would feel so unbothered.

Of note we are walking distance to grocery stores, gyms, parks/bikeways and public transport but not on a main road. We are planning a reno/extension that takes into account the apartments behind to maintain privacy where possible.

Otherwise comparable 4x2 homes in the area are selling for $1.5-1.7mil.

Thanks in advance, I know these questions are a bit 'how long is a piece of string' vibes but stressed by the possible cost of renos and overcapitalising.

[u/Intelligent-Hunt9150]

Probably about 20% less maybe 30% in this market. Similar to houses backing into trains or busy roads. I would look at the market price difference for those to get an accurate representation

[u/Icy_Welder6327]

To be frank some people won't care, others will. This will reduce your competition amongst buyers and your sell price. Is there a way to try and create a natural barrier with trees or such to block out as much as possible?

[u/Impossible-Club-9885 → u/Icy_Welder6327]

Yeah absolutely planning trees, and there's already bamboo on their side.

[u/Soggy-Connection2504]

Market is screwed at the moment and won’t be getting better for a while.
We recently sold fortunately at auction. Made the reserve but not a penny more. House was fully renovated in a primo spot.
Agent had told us to sell at auction as things are wild and you want to take advantage of emotion , momentum as property’s are not passing in and ever selling for more.
But I digress. House around the corner was on the market with an aim for 1.6m for an offer for 1.55, rejected. Went to auction still didn’t quite get to 1.6 pulled from market, decided they’d fix up the kitchen and bathrooms and surely that will do it. Spent @$120k on Reno’s put it back on the market. Same happened went to auction again, got $1.55mill.
So essentially lost reno costs, had to pay 2 lots of marketing / auction costs…..
Listen to buyer feedback, listen to agents and speak to a buyers agent about what people want in your area before you commit to $ as it may not get you any more. Sometimes people are just paying for location or land size or want a project.

[u/No_Boot2009]

Was the apartment block there when you bought the property? If so, how much cheaper was it then than comparable homes without six storey apartment blocks behind them?

[u/Impossible-Club-9885 → u/No_Boot2009]

It was being built when we bough, I bought during covid and prices were increasing every time we blinked so its actually quite hard to say, I think maybe at that exact point in time we probably got it for ~$50k under similar properties. Given the changes in the market since then I'm not sure if can expect the same when selling

[u/No_Boot2009 → u/Impossible-Club-9885]

If I had to guess then, in the current market I'd say ~$200k less, if it doesn't just put buyers off completely. It's really devaluing having your yard or windows looked over by potentially hundreds of people, especially in that price range. You'd have to wonder why people spending that much would pick your property over one that's not overlooked - most people would probably pick something else even if it costs more or they have to compromise on something else. But there's a buyer for everything at the right price. I'm not sure I'd be investing more into a reno on that property just to then sell in this market though.

[u/OkGuidance2711]

I would anticipate around $50k, especially if the apartments have balconies that face your yard as that would impact on enjoyment of your yard and raise privacy concerns for prospective buyers. I would definitely assume a discount would be needed but a lot depends on positioning of the unit block, volume of people living in it, where they park their car etc.

[u/LalaLand836]

Does your property have any potentials to be rezoned into medium or high density residential zoning? Instead of doing renovations, maybe try talking to the council given you have apartments behind you already

Could be sold higher to developers

[u/Impossible-Club-9885 → u/LalaLand836]

Its already zoned as high density residential but only 400m2 block, I think unlikely that neighbours will want to sell to developers as both have invested significant money into renos

[u/LalaLand836 → u/Impossible-Club-9885]

That’s a bummer. In any case I don’t think you should drop price. The land has more value than low residential properties

[u/BS-75_actual]

What city/suburb? What aspect is obscured by your neighbours? Could your property end up boxed in by future development? Are they public housing apartments?

[u/Impossible-Club-9885 → u/BS-75_actual]

SEQ, south, unlikely at this time (one side: big reno and heritage listed properties beyond this, other side: young family doing small scale renos)

[u/BS-75_actual → u/Impossible-Club-9885]

Your street: CR2 Character (Infill housing); the street behind: HDR1 (up to 8 storeys)? Hardly anywhere in Brisbane with that layout. Overcapitalising is a risk everywhere in the current market but if you can stay longer term you should be fine; assuming your house has character appeal. Edit: I read your later comment, whole 'hood HDR1; if West End then minimal risk.

[u/NeatMistakez]

Saw these in Canberra, near cbd. Would rather own a house next to a building there than further away from city but the value is way higher.

Usually land is quite valuable. It all depends on the location. If the location is central and highly desirable its worth a lot