34 property owners in South East Queensland requested assessments this month
iKey Facts
- •Development value is calculated using residual land value: GRV minus construction costs minus developer margin
- •Properties zoned medium-density (MDR) or higher can be worth 30-100% more as development sites than as homes
- •Key value drivers: zoning, lot size (800m2+), frontage width, slope gradient, and infrastructure proximity
- •Brisbane inner-ring development sites (5km of CBD) typically sell between $1,500-$4,000 per sqm of land
- •ACRES provides free development site assessments for property owners in South East Queensland — call 07 3096 0542
Development Value vs Market Value
If you own a house on a large block in an area zoned for medium or high density, your property may be worth significantly more as a development site than as a home. The key is understanding the difference between market value (what a home buyer would pay) and development value (what a developer would pay).
Development value is calculated using a method called residual land value. It works backwards from the end product.
How Residual Land Value Works
The formula is straightforward:
Land Value = Gross Realisable Value − Development Costs − Developer's Margin
For example, if a developer can build 10 apartments on your site, each selling for $600,000:
- Gross Realisable Value (GRV): 10 × $600,000 = $6,000,000
- Development costs (construction, fees, finance, marketing): $4,000,000
- Developer's margin (20% of GRV): $1,200,000
- Maximum land price: $6,000,000 − $4,000,000 − $1,200,000 = $800,000
This is the maximum a developer can pay while still achieving an acceptable return. In practice, competitive tension between developers can push prices higher.
Factors That Increase Your Land's Development Value
"The key is understanding the difference between market value (what a home buyer would pay) and development value (what a developer would pay)."
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Brisbane Zoning Cheat Sheet 2026
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Zoning and Height Limits
The single biggest factor. A property zoned for 6-storey apartments is worth dramatically more than one zoned for 2-storey townhouses. Check your local planning scheme for:
- Maximum building height
- Plot ratio (how much floor space relative to land area)
- Site coverage limits
- Minimum lot sizes for subdivision
Site Characteristics
Developers pay more for sites that are:
- Flat or gently sloping (reduces construction costs)
- Regular shaped (rectangular is ideal)
- Wide frontage (allows better building design and access)
- Corner blocks (dual frontage, better apartment layouts)
- North-facing (premium for residential end-buyers)
Location Fundamentals
Strong end-buyer demand translates directly to higher GRV, which means developers can pay more for your land:
- Walking distance to train stations or busways
- Close to employment centres, universities, hospitals
- Near retail, cafes, and lifestyle amenities
- In suburbs with strong demographic growth
Existing Approvals
A site with a current Development Approval (DA) typically commands a 10-20% premium over an unapproved site. The developer avoids the time, cost, and risk of the approval process.
What Reduces Development Value
- Contamination or suspected contamination (former service stations, industrial uses)
- Flood overlays requiring elevated construction
- Heritage overlays restricting demolition or design
- Easements through the building envelope reducing developable area
- Steep topography increasing construction complexity
- Poor access (narrow driveways, no rear lane access)
How to Get an Accurate Valuation
A standard residential valuation won't capture development potential. You need either:
- A development site appraisal from a specialist agent who understands the developer market
- A feasibility study prepared by a quantity surveyor and town planner
- Developer feedback — an experienced agent can quietly test the market before you commit to selling
At ACRES, we provide confidential development site appraisals at no cost. We assess your property's zoning, constraints, and realistic development yield to give you an informed view of what the market will pay.
Frequently Asked Questions
How much more is my property worth as a development site?
In inner-city Brisbane, a house on 800m² zoned for medium density could be worth 50-100% more to a developer than to a home buyer. Corner blocks near transport can see even greater premiums.
Do I need a DA before selling my development site?
Not necessarily. Many developers prefer to purchase without approval so they can design their own project. However, having a DA can increase the price and speed up the sale.
How long does it take to sell a development site?
Development site sales typically take 3-6 months from listing to unconditional contract, with settlement often extended for finance or DA conditions.
How do I find out if my property has development potential?
Check your council zoning map to see if your property is zoned medium or high density residential. ACRES provides free development site assessments — call 07 3096 0542 for a confidential appraisal.
What is residual land value and how does it affect my price?
Residual land value is calculated by taking the Gross Realisation Value of a completed project minus construction costs and developer margin. This is how developers determine what they can pay for your land.
Can I stay in my home while the development approval runs?
Yes. Many development site contracts include a settlement period of 12-24 months, allowing vendors to remain in their home while the developer obtains approvals.
Should I sell to the first developer who approaches me?
No. Creating competitive tension between 3-5 qualified developers typically increases sale price by 10-20%. ACRES runs competitive campaigns to maximise your result.
What is the minimum block size developers look for in Brisbane?
Most developers target blocks of 600m²+ for duplexes and 800m²+ for townhouses. However, corner blocks of 500m² can also be attractive due to dual frontage advantages.
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/how-much-is-my-land-worth-for-development | 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
