{"id":20977,"date":"2018-05-03T01:00:05","date_gmt":"2018-05-02T15:00:05","guid":{"rendered":"https:\/\/realestatetalk.com.au\/?p=20977"},"modified":"2018-05-03T01:00:05","modified_gmt":"2018-05-02T15:00:05","slug":"knockdowns-increase-greville-pabst","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/knockdowns-increase-greville-pabst\/","title":{"rendered":"Knockdowns increase \u2013 Greville Pabst"},"content":{"rendered":"

Greville Pabst<\/strong> from WBP Group has noticed an increase in the number of properties being knocked over for reconstruction.\u00a0 We ask him why the increase, what to be aware of before starting and how, if you are doing it, to add value.
\nTranscript:<\/strong>
\nKevin:<\/strong>\u00a0 Apparently, according to Greville Pabst, who is the Executive Chairman of the WBP Group, there has been an increase in the number of properties that are being knocked over for reconstruction. Interesting. This could be an interesting development.
\nGreville, welcome to the show. Thanks for your time.
\nGreville:<\/strong>\u00a0 Thanks, Kevin.
\nKevin:<\/strong>\u00a0 Greville, how big as the increase been?
\nGreville:<\/strong>\u00a0 Around Australia, the increase in knockdowns is up to 37%, so it is quite significant. I think it\u2019s driven by quite a number of factors. Firstly, I think it\u2019s more affordable to do that now because of the low interest rates that we have. But the other point, too, is because house prices around Australia have become quite expensive, it\u2019s now prohibitive to go and sell and buy because of the high transfer costs and stamp duty.
\nKevin:<\/strong>\u00a0 Greville, define a knockdown for me. And who\u2019s doing it? Are these current owners or are these people who are buying them to knock them over to redevelop them?
\nGreville:<\/strong>\u00a0 Look, it\u2019s a combination. It\u2019s a combination of existing owners who have older properties in the inner-city areas of the capital cities where the land is highly valuable. So, they\u2019re doing that and building something new, or they\u2019re doing a dual occupancy.
\nOr the other thing is developers are moving in because what the state governments are trying to do is increase the level of density within the inner-city areas, the in-fill. So, the zoning changes have now allowed two houses side by side.
\nI was dealing with a developer the other day and he was getting 30 apartments on two suburban house blocks. The councils and state governments are encouraging this density, and so a lot of people are actually, in those middle ring suburbs, cashing in to developers.
\nKevin:<\/strong>\u00a0 It makes a lot of sense, doesn\u2019t it? Particularly in some of the capital city areas, empty-nesters, they probably have a really nice home on a big block of land. It makes a lot of sense to pull it down and rebuild something that\u2019s going to fit their existing lifestyle because their situation has changed, and then they get the bonus of having some additional property that they can sell off or even hold and lease.
\nGreville:<\/strong>\u00a0 And I\u2019m seeing that even in Sydney, in areas like Coogee where land is quite expensive. They\u2019re typically only 400-square-meter blocks, but people put in granny flats in the back and things like that.
\nThis whole density is driving it, and the fact that land is so expensive, if you can carve it up and create two or three or four lots, there\u2019s actually good money in doing that.
\nKevin:<\/strong>\u00a0 Someone contemplating doing this is listening to this now and saying \u201cThat\u2019s not a bad idea. I\u2019ve been thinking about doing it,\u201d what should they be aware of before they start, Greville? What are you seeing?
\nGreville:<\/strong>\u00a0 There are a number of factors. One is the size of the land. I think the frontage is really important. If you have, say, a 55-meter frontage, particularly in Melbourne, it can allow you to do a side-by-side development. Corner sites are particularly valuable because you can get two street frontages, or if you have a dual street frontage, so if you have another street at the back, you can go a back-to-back development. That\u2019s really important.
\nKevin:<\/strong>\u00a0 Greville, is heritage a consideration for people wanting to do this?
\nGreville:<\/strong>\u00a0 Heritage is very important. It\u2019s something that people need to investigate beforehand, because, of course, there are some properties that are covered by heritage overlays and height controls and so forth, so they simply can\u2019t demolish it completely; they may have to retain the fa\u00e7ade.
\nThe same with vegetation. There are now, of course, lots of planning controls around vegetation. They couldn\u2019t simply cut down a tree these days. You need to get that permission to do so.
\nKevin:<\/strong>\u00a0 You could go to the council to find that out or even go to a town planner, I would imagine. They would give you all that information.
\nGreville:<\/strong>\u00a0 Yes, that\u2019s correct. You really need to investigate the local council regulations and engage a town planner.
\nKevin:<\/strong>\u00a0 You\u2019ve no doubt been involved in a number of these over the years. What advice have you got for someone to help them add more value to what they\u2019re going to be doing?
\nGreville:<\/strong>\u00a0 It\u2019s the selection of the property. The selection is critical because that really can dictate what you\u2019re allowed to do. The orientation of the site is particularly important as well. Does it have a north-facing backyard? Is it a corner block? What is the size? What is the frontage? All of these factors affect that.
\nAnd zoning is particularly important because, of course, that will dictate the height that you can go and the density and the number of unit that you can put onto the site.
\nKevin:<\/strong>\u00a0 I would imagine someone who has the property themselves, they might live in it right now, they should probably also research the marketplace to see, if they\u2019re going to redevelop it, what type of property is probably going to be in tune with the current market.
\nGreville:<\/strong>\u00a0 Yes, that\u2019s correct. When you\u2019re building and looking to sell something, you really need to build for that demographic. So, you need to look at who is in that area? Are they young professionals? Are they older people? That\u2019s going to dictate what you\u2019re going to be able to get you a good price when you do sell it.
\nKevin:<\/strong>\u00a0 Greville, have you been to any auctions lately? Because we saw you on\u00a0The Block,\u00a0<\/em>performing well there. You\u2019ve been still buying plenty?
\nGreville:<\/strong>\u00a0 The market has gotten easier for us, funnily enough. When the clearance rates are sort of in the range that they are now \u2013 between 65% and 75% \u2013 it makes it easier for us to buy. It was quite difficult there for a while when clearance rates are nudging 80%. As professional buyers, we were getting outbid. So yes, it\u2019s a much better market now for buyers.
\nKevin:<\/strong>\u00a0 Isn\u2019t that interesting? We do a segment every week with Andrew Wilson. We talk about clearance rates, and we bemoan the fact that it\u2019s a 60% clearance rate. We say \u201cOh wow, what\u2019s happening to the market?\u201d But from your perspective, that\u2019s probably a good thing.
\nEven 60% or 70% is still a good clearance rate. I think we got spoiled with 90% and 90%.
\nGreville:<\/strong>\u00a0 65% to 70% is a very good market. It ensures that there\u2019s balance and you\u2019re still going to get capital growth of 5% to 8%. You\u2019re not going to have four or five bidders at auction, which is going to drive your prices to absolute silly figures. You\u2019re going to have maybe two bidders at auction.
\nKevin:<\/strong>\u00a0 You can handle that, yes.
\nGreville:<\/strong>\u00a0 You can handle that. And certainly, we don\u2019t want competition when we go to auction to buy, so it\u2019s a good market for us and our clients.
\nKevin:<\/strong>\u00a0 Spoken like a good buyer\u2019s agent. Good on you. Greville Pabst there, Executive Chairman of WBP Group. You can certainly have him on your side. Good on you, Greville. Talk soon, mate.
\nGreville:<\/strong>\u00a0 Thanks, Kevin. Cheers, mate. Bye.<\/p>\n","protected":false},"excerpt":{"rendered":"

Greville Pabst from WBP Group has noticed an increase in the number of properties being knocked over for reconstruction.\u00a0 We ask him why the increase, what to be aware of before starting and how, if you are doing it, to add value. Transcript: Kevin:\u00a0 Apparently,…<\/p>\n","protected":false},"author":176692471,"featured_media":20978,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[10,11,13,35,22,25,27],"tags":[101],"class_list":["post-20977","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kevin-turner-sponsored-channels","category-kevin-update","category-latest-story","category-property-development-topic","category-research-topic","category-sponsored-channels","category-trends-topic","tag-podcast"],"yoast_head":"\nKnockdowns increase \u2013 Greville Pabst - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/knockdowns-increase-greville-pabst\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Knockdowns increase \u2013 Greville Pabst - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"Greville Pabst from WBP Group has noticed an increase in the number of properties being knocked over for reconstruction.\u00a0 We ask him why the increase, what to be aware of before starting and how, if you are doing it, to add value. Transcript: Kevin:\u00a0 Apparently,...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/channels.realty.com.au\/realtytalk\/knockdowns-increase-greville-pabst\/\" \/>\n<meta property=\"og:site_name\" content=\"Realty Talk\" \/>\n<meta property=\"article:published_time\" content=\"2018-05-02T15:00:05+00:00\" \/>\n<meta name=\"author\" content=\"rolanrush\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rolanrush\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/knockdowns-increase-greville-pabst\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/knockdowns-increase-greville-pabst\\\/\"},\"author\":{\"name\":\"rolanrush\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"headline\":\"Knockdowns increase \u2013 Greville Pabst\",\"datePublished\":\"2018-05-02T15:00:05+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/knockdowns-increase-greville-pabst\\\/\"},\"wordCount\":1289,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/knockdowns-increase-greville-pabst\\\/#primaryimage\"},\"thumbnailUrl\":\"\",\"keywords\":[\"podcast\"],\"articleSection\":[\"Kevin Turner\",\"Kevin's Update\",\"Latest Stories\",\"Property Development\",\"Research\",\"Sponsored Channels\",\"Trends\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/knockdowns-increase-greville-pabst\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/knockdowns-increase-greville-pabst\\\/\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/knockdowns-increase-greville-pabst\\\/\",\"name\":\"Knockdowns increase \u2013 Greville Pabst - Realty Talk\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/knockdowns-increase-greville-pabst\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/knockdowns-increase-greville-pabst\\\/#primaryimage\"},\"thumbnailUrl\":\"\",\"datePublished\":\"2018-05-02T15:00:05+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/knockdowns-increase-greville-pabst\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/knockdowns-increase-greville-pabst\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/knockdowns-increase-greville-pabst\\\/#primaryimage\",\"url\":\"\",\"contentUrl\":\"\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/knockdowns-increase-greville-pabst\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Knockdowns increase \u2013 Greville Pabst\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#website\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/\",\"name\":\"Realty Talk\",\"description\":\"Your Trusted Voice For Property Investing. Anywhere, Anytime.\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\",\"name\":\"rolanrush\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g\",\"caption\":\"rolanrush\"},\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/author\\\/rolanrush\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Knockdowns increase \u2013 Greville Pabst - Realty Talk","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/channels.realty.com.au\/realtytalk\/knockdowns-increase-greville-pabst\/","og_locale":"en_US","og_type":"article","og_title":"Knockdowns increase \u2013 Greville Pabst - Realty Talk","og_description":"Greville Pabst from WBP Group has noticed an increase in the number of properties being knocked over for reconstruction.\u00a0 We ask him why the increase, what to be aware of before starting and how, if you are doing it, to add value. Transcript: Kevin:\u00a0 Apparently,...","og_url":"https:\/\/channels.realty.com.au\/realtytalk\/knockdowns-increase-greville-pabst\/","og_site_name":"Realty Talk","article_published_time":"2018-05-02T15:00:05+00:00","author":"rolanrush","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rolanrush","Est. reading time":"6 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/channels.realty.com.au\/realtytalk\/knockdowns-increase-greville-pabst\/#article","isPartOf":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/knockdowns-increase-greville-pabst\/"},"author":{"name":"rolanrush","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d"},"headline":"Knockdowns increase \u2013 Greville Pabst","datePublished":"2018-05-02T15:00:05+00:00","mainEntityOfPage":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/knockdowns-increase-greville-pabst\/"},"wordCount":1289,"commentCount":0,"image":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/knockdowns-increase-greville-pabst\/#primaryimage"},"thumbnailUrl":"","keywords":["podcast"],"articleSection":["Kevin Turner","Kevin's Update","Latest Stories","Property Development","Research","Sponsored Channels","Trends"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/channels.realty.com.au\/realtytalk\/knockdowns-increase-greville-pabst\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/channels.realty.com.au\/realtytalk\/knockdowns-increase-greville-pabst\/","url":"https:\/\/channels.realty.com.au\/realtytalk\/knockdowns-increase-greville-pabst\/","name":"Knockdowns increase \u2013 Greville Pabst - Realty Talk","isPartOf":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/#website"},"primaryImageOfPage":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/knockdowns-increase-greville-pabst\/#primaryimage"},"image":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/knockdowns-increase-greville-pabst\/#primaryimage"},"thumbnailUrl":"","datePublished":"2018-05-02T15:00:05+00:00","author":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d"},"breadcrumb":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/knockdowns-increase-greville-pabst\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/channels.realty.com.au\/realtytalk\/knockdowns-increase-greville-pabst\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/channels.realty.com.au\/realtytalk\/knockdowns-increase-greville-pabst\/#primaryimage","url":"","contentUrl":""},{"@type":"BreadcrumbList","@id":"https:\/\/channels.realty.com.au\/realtytalk\/knockdowns-increase-greville-pabst\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/channels.realty.com.au\/realtytalk\/"},{"@type":"ListItem","position":2,"name":"Knockdowns increase \u2013 Greville Pabst"}]},{"@type":"WebSite","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#website","url":"https:\/\/channels.realty.com.au\/realtytalk\/","name":"Realty Talk","description":"Your Trusted Voice For Property Investing. Anywhere, Anytime.","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/channels.realty.com.au\/realtytalk\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d","name":"rolanrush","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g","caption":"rolanrush"},"url":"https:\/\/channels.realty.com.au\/realtytalk\/author\/rolanrush\/"}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts\/20977","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/users\/176692471"}],"replies":[{"embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/comments?post=20977"}],"version-history":[{"count":0,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts\/20977\/revisions"}],"wp:attachment":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/media?parent=20977"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/categories?post=20977"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/tags?post=20977"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}