The Difference Between DA-Approved and Non-Approved Sites

The Pricing Differential

Take an identical Brisbane MU1 site, with and without DA:

Site Variant	Indicative Price
Non-approved	$4,500,000
DA-approved (clean conditions)	$5,400,000 (+20%)
DA-approved (with onerous conditions)	$4,800,000 (+7%)

The headline 20% premium for DA-approved isn't free — buyers pay for what they receive.

What Buyers Get with DA Approval

1. Time saved — 6-12 months of approval pursuit eliminated
2. DA risk eliminated — no chance of refusal, appeal, or condition negotiation
3. Yield certainty — exactly what can be built is locked in
4. Lower holding costs — straight to construction finance (no carrying cost on dead land)
5. Pre-sale launch can begin earlier — material acceleration of cash flows

For a developer, those benefits are quantifiable. A 12-month time saving at 10% blended cost of capital on a $25m project is roughly $2.5m of present-value benefit. Paying 20% more for DA-approved is rational.

When DA-Approved Pricing Doesn't Make Sense

Three scenarios where buyers prefer non-approved:

1. Design Optionality Mismatch

The DA-approved scheme doesn't fit the buyer's preferred product mix. They'd need to vary the DA (which costs time and money) — sometimes preferable to start fresh.

2. Onerous Conditions

DA conditions can include: significant infrastructure contributions, design constraints, third-party agreements, build-by deadlines. Some onerous conditions effectively negate the premium.

3. Strategic Rezoning Play

Buyers pursuing rezoning or amalgamation often prefer non-approved sites because the existing DA constrains future strategic moves.

What Vendors Should Consider

Vendors weighing whether to obtain DA before sale:

Cost: $50,000-$300,000+ depending on complexity (architect, planner, engineers, council fees)
Time: 6-18 months
Risk: refusal, conditions, appeals
Upside: 10-30% premium

The math typically favours obtaining DA when:

• The site is straightforward (code-assessable, clean overlays)
• Vendor has time and capital
• The premium captures meaningfully more than the DA cost
• The DA scheme matches typical developer demand

The math typically opposes obtaining DA when:

• Site has unusual constraints requiring extensive negotiation
• Vendor has time pressure
• The market for the site's product is uncertain
• Specialist developer buyers prefer their own design control

How To Review a DA Before Buying

If you're acquiring a DA-approved site:

1. List all conditions with cost and feasibility implications
2. Confirm validity period — when does the DA expire?
3. Check expansion / variation rights — can it be amended?
4. Verify infrastructure charges — paid or outstanding?
5. Confirm design ownership — architectural plans usually licensed not owned

Specialist legal + town planning review is essential.