85-87 Lethbridge Street, Penrith NSW 2750

Fire-damaged shell | R4 zoning unlocked | 1,176m² dual lot | buyer must fund demolition The property is effectively vacant land with a burn liability. The fire damage forces an immediate demolition cost of roughly $40,000 to $60,000 before any development can proceed, and the as-is condition eliminates any mortgage finance option for most buyers. The true opportunity lies in the dual-lot R4 zoning, which allows apartment development without the usual lot consolidation hurdle, and the 18-metre height limit supports a three-to-four-storey yield. This holding works best for a developer who can fund demolition from equity and carry the site through to DA approval; it is not suitable for an owner-occupier seeking a livable home. The rarity here is the combined 1,176m² holding with a 24-metre frontage, which meets the minimum lot size and frontage requirements for residential flat buildings under the Penrith LEP—most sites in this corridor fall short of either metric. Proximity to Penrith station within 800 metres also triggers the NSW Low & Mid-Rise Housing Policy, adding terraces and manor houses as permitted uses, which broadens the exit strategy. This suits a strategic buyer who values optionality over immediate cash flow. The rental yield and median data are irrelevant for this property—the house is uninhabitable. Comparable vacant R4 lots in Penrith have traded between $1,200 and $1,500 per square metre over the past year, positioning this site’s land value at roughly $1.41 million to $1.76 million before demolition costs. That range aligns with the estimated $1.65–$1.78 million as-is value, suggesting the burning has not materially discounted the land. Consider engaging a geotechnical consultant and a town planner before auction to confirm the demolition scope and confirm the height limit is not subject to a recent planning proposal amendment.