Do DA’s add value to a property?

January 17th, 2017

Do DA’s (literally “Development Applications” but a shorthand misnomer for development consent) add value to a property?

The answer is yes but often, no.

This typically upbeat mainstream article focuses only on the yes’s without mentioning the no’s which include:

• lots of property buyers may not have the same development idea as the vendor so still face the cost and risk of amending the consent or starting afresh

• uncontroversial consents, like a ‘one of many in the street rear or second storey extensions’ add little or no value

• the value of a consent is likely to diminish in NSW the more the State Government relaxes planning controls – it is not a static concept

• many developers shun approved sites because the consent, especially if it was controversial, has already sucked out some of the profit:

http://www.domain.com.au/…/the-trump-card-homeowners-are-p…/