Can you imagine how far the urban sprawl would be now if we had stuck with 1000sqm blocks?
By the 70's the average block was in the 700-800sqm, I am in an area from that period and the typical house is a 3 x 1 and many didn't have a carport let alone garage. That period had very little character and it is questionable you could do them up to a more modern standard. Land development back then was little more than a pegged out area so you had to have a septic system and put in your own retaining wall
500sqm is a big block in new development, quite acceptable IMO as you could build a decent size house, still have a decent size outdoor area and even a pool.
As mentioned previously affordability is a big driver for smaller lots but you can still buy bigger lots.
A redevelopment close by has only recently had the first homes starting to be built, has a mix of Apartments, cottage lots and bigger 500sqm lots which IMO could work well.
Port Cogee also has a mix of apartments cottage lots and the bigger lot, it looks a little cramped but with a reasonable size population it could become quite a vibrant area which could support more than just one or two cafe's
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