iKey Facts
- •Same Brisbane land can have residential value AND development-site value — they're different
- •Development value typically 1.4-3x residential value where development is feasible
- •Eight factors determine which value applies: zoning, scale, frontage, access, demographics, services, planning history, neighbour context
- •Pricing on residential value when development is feasible can cost vendors $300k-$3m
- •See companion: What Makes a High-Performing Brisbane Development Site
Two Different Values
Every Brisbane property has up to two values:
Residential value: what an owner-occupier or investor would pay for the existing dwelling.
Development-site value: what a developer would pay to acquire the land for redevelopment.
These values differ because they reflect different uses:
- Residential value = the dwelling + land in current form
- Development value = the land's capacity for redevelopment (apartments, townhouses, mixed-use)
When the Gap Opens
The development premium emerges when:
- Zoning permits more density (LMR2, LMR3, MU1)
- Site scale supports development (typically 600sqm+)
- Catchment supports new product (demographics, demand)
- Services are adequate (sewer, water, etc.)
- No prohibitive overlays (heritage, character)
If all five conditions are met, development value can be 1.4-3x residential value.
The Gap by Suburb Tier
In Brisbane:
Inner-ring (Newstead, South Brisbane, Toowong, Kelvin Grove):
- Residential: $1.5m-$2.5m for an established home on 600-800sqm
- Development: $2.5m-$5m for the same site under LMR3 / MU1 zoning
- Gap: 1.5-2x
Middle-ring (Coorparoo, Greenslopes, Carindale):
- Residential: $1.0m-$1.5m
- Development (where applicable): $1.5m-$2.5m
- Gap: 1.4-1.8x
Outer-ring:
- Residential: $600k-$900k
- Development (where applicable): $900k-$1.3m
- Gap: 1.3-1.6x
Who Pays Which Price?
"Two Different Values Every Brisbane property has up to two values: Residential value: what an owner-occupier or investor would pay for the existing dwelling."
Speak with our team
ACRES provides expert property advisory across Australia.
- Home buyer / investor: residential value
- Developer / amalgamator: development-site value (if site qualifies)
This is why vendor representation matters. A real estate agent marketing to home buyers will achieve residential value. A specialist advisor marketing to developers achieves development value.
How to Tell Which Applies
If your land:
- Is 600sqm+
- Has LMR2, LMR3, or MU1 zoning
- Is in a middle/inner Brisbane suburb
- Has adequate services
- No major overlays
→ Development value likely applies. Don't list with a generic agent.
If your land:
- Is under 500sqm
- Has Low Density Residential zoning
- Is in a character / heritage precinct
- Has constrained access
→ Residential value applies; standard agent suitable.
Common Vendor Mistakes
- Listing at residential value when development is feasible
- Using a generic agent when specialist required
- Pricing on Domain / realestate.com.au AVM (residential-only)
- Believing the first developer's direct-approach offer
- Selling before checking development potential
Vendor Strategy
- Engage a specialist for a development feasibility check
- Compare both pricing scenarios before listing
- Choose representation that matches the value tier
- Don't mix markets — don't list publicly for residential while approaching developers
ACRES provides free pre-listing development feasibility for Brisbane vendors. Contact 07 3096 0542.
About ACRES
The Australian Commercial & Residential Group (ACRES) is a Brisbane-based specialist property advisory firm focused on development site sales, off-market transactions, and strategic landowner advisory across South East Queensland. Founded by Daniel McCormack, ACRES advises on transactions from $2m to $100m+ and operates a proprietary database of active Brisbane developers and institutional buyers.
Frequently Asked Questions
How do I know which value applies to my home?
Pre-feasibility from a specialist. ACRES provides free pre-feasibility for Brisbane sites.
Will a generic agent achieve development value?
Rarely. Specialist advisor with developer network typically required.
Can I get both home buyers and developers to bid?
Yes — sometimes. Specialist advisor structures campaigns to capture both markets.
Suburbs Mentioned in This Article
Published by ACRES — Australian Commercial & Residential Group
Source: acres.au/insights/residential-vs-development-site-value-explained | 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
