34 property owners in South East Queensland requested assessments this month
iKey Facts
- •Retirees on large blocks in growth suburbs can receive 30-80% more by selling to a developer vs a home buyer
- •Many developers offer extended settlement terms (12-24 months) so vendors can remain in their home while planning
- •Downsizer contribution rules allow Australians 55+ to contribute up to $300,000 from home sale to super
- •Popular downsizer-to-developer suburbs: Coorparoo, Greenslopes, Morningside, Holland Park, Camp Hill
- •ACRES provides a free, no-obligation assessment to determine if your property has development potential
The Downsizer Opportunity
If you've owned your family home for 20+ years in an inner Brisbane suburb, you may be sitting on a windfall. Suburbs that were quiet residential streets when you bought are now prime development corridors — and the land your home sits on could be worth far more than the house itself.
For retirees and downsizers, this represents a unique opportunity: sell your property as a development site, unlock a premium price, and fund the next chapter of your life.
Why Your Property Might Be Worth More
The Suburb Has Changed
Inner Brisbane suburbs have been progressively upzoned over the past two decades. Properties that were zoned for houses when you bought may now be zoned for townhouses or apartments. This rezoning can double or triple the land value.
The Block Is Larger Than Modern Standards
Older homes typically sit on blocks of 600-1,000m² or more. Modern residential lots are often 300-450m². Your oversized block is exactly what developers need.
Infrastructure Has Arrived
New train stations, bus corridors, and urban renewal projects have transformed your neighbourhood. Properties near these investments are the most sought-after development sites.
How It Works in Practice
The Numbers
Consider a typical scenario for a downsizer in an inner Brisbane suburb:
| Residential Sale | Development Site Sale | |
|---|---|---|
| Your property (800m², MDR zoning) | $1,100,000 | $1,600,000 - $1,800,000 |
| Less: Agent commission | $25,000 | $35,000 |
| Less: Legal fees | $2,000 | $3,000 |
| Net proceeds | $1,073,000 | $1,562,000 - $1,762,000 |
| Additional value | — | $489,000 - $689,000 |
"The Downsizer Opportunity If you've owned your family home for 20+ years in an inner Brisbane suburb, you may be sitting on a windfall."
Considering downsizing?
Selling to a developer could fund a comfortable retirement.
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That additional $500,000-$700,000 could fund:
- A premium downsizer apartment or townhouse
- Travel and lifestyle for years
- Financial security and reduced reliance on superannuation
- A meaningful gift or inheritance for your family
Tax Considerations
If the property has been your main residence for the entire ownership period, the capital gain is likely CGT-free under the main residence exemption. This makes the development premium even more valuable — it's largely tax-free money.
Additionally, the government's downsizer contribution scheme allows people aged 55+ to contribute up to $300,000 each ($600,000 per couple) from the sale of their home into superannuation, regardless of the usual contribution caps.
The Process for Downsizers
- Get a development site assessment — Find out what your property is worth to developers
- Decide on timing — You don't need to have found your next home before listing
- Choose an agent specialising in development sites — not a general residential agent
- Market the property through an EOI or off-market campaign
- Negotiate settlement terms that give you time to find and settle on your next home (typically 6-12 months)
- Move at your pace — extended settlements mean you control the timeline
Common Concerns
"I don't want to leave my neighbourhood"
You don't have to. Many downsizers purchase an apartment or townhouse in the same suburb — or in a nearby completed development. Your agent can help identify suitable options.
"The process seems complicated"
A specialist agent and solicitor handle the complexity. For you, the process is similar to any property sale — just with a higher price and more flexible terms.
"My home has sentimental value"
This is completely understandable. But consider: the home will eventually be sold or passed on regardless. Selling as a development site ensures you capture the maximum value from a lifetime of ownership and investment.
"Will the developer demolish my home?"
Most likely, yes. But the development will provide new homes for 10, 20, or 30+ families in a suburb you helped build into the desirable place it is today. There's a positive legacy in that.
Frequently Asked Questions
Can I sell my home to a developer to fund retirement?
Yes. If your property is in a growth suburb with medium-to-high density zoning, selling as a development site can unlock 30-70% more than a standard residential sale, often largely tax-free under the main residence exemption.
Do I pay CGT when selling my home as a development site?
If the property has been your primary residence for the entire ownership period, the capital gain is generally exempt from CGT. The government downsizer contribution scheme also allows additional super contributions.
How much more will I get from a developer than a home buyer?
Development premiums of 30-70% above residential value are common for well-located sites. On a $1.1M home, that could mean an additional $400,000-$700,000.
What property do you want assessed?
Our team will review your zoning, block size, and development potential.
100% free. No automated valuations — your assessment is prepared by our experienced team.
Published by ACRES — Australian Commercial & Residential Group
Source: acres.au/insights/downsizing-selling-to-developer-fund-retirement | ACRES (Australian Commercial & Residential Group) provides property advisory, development site sales, and residential real estate services across Brisbane and South East Queensland, Australia.
Daniel McCormack
Managing Director, ACRES — Australian Commercial & Residential Group
