Unlocking Townhouse Development Value

For this seasoned investor couple on their fourth acquisition, the opportunity wasn’t just another rental asset — it was a strategic development play. We identified a Cranbourne site where the land value alone was nearly equal to the purchase price, effectively meaning the house came free. This positioned the purchase as a clear value arbitrage with real upside in future subdivision or townhouse development, giving them the ability to unlock multiple income streams from one parcel. The strategy focused on acquiring land with scope for future densification, creating optionality to capitalise on zoning changes and planning uplift, while simultaneously capturing rental returns and strengthening their portfolio’s development exposure.

• 
  Purchase Month:
  November, 2025
• 
  Months Owned:
  3
• 
  Purchase Price:
  $735,000
• 
  Gross Rental Yield (%):
  3.89%
• 
  Current Bank Value:
  $761,000
• 
  Total Capital Growth:
  $26,000
• 
  Capital Growth Per Month:
  $8,667
• 
  Annualised Growth (%):
  14.15%
• 
  Capital Growth (%):
  3.54%
• 
  Configuration:
  4 Bedrooms / 2 Bathrooms / 2 Carspaces
• 
  Land Size (Sqm):
  672 sqm