Should I Get Development Approval (DA) Before Selling My Property?

The Big Question

One of the most common questions from development site vendors is: "Should I get a DA before selling?" The answer depends on your circumstances, budget, and risk appetite.

Arguments For Getting a DA First

Higher Sale Price

A site with an approved DA typically commands a 10-20% premium over an unapproved site. The developer avoids:

• DA preparation costs ($50,000-$150,000+ for consultants)
• Approval risk (the possibility of refusal)
• Time delay (6-12 months for the approval process)

Faster Sale

Sites with existing approvals sell faster because the buyer's risk is significantly reduced. Unconditional contracts become more common.

Broader Buyer Pool

Some developers only purchase DA-approved sites. Having approval opens your property to this additional buyer segment.

Price Certainty

An approved scheme gives clear parameters for feasibility analysis, leading to more confident and higher offers.

Arguments Against Getting a DA First

Significant Upfront Cost

Obtaining a DA requires engaging:

• Architect: $20,000-$50,000+ for DA drawings
• Town planner: $10,000-$20,000 for the application
• Engineers: $5,000-$15,000 for civil, structural, and stormwater
• Other consultants: Traffic, acoustic, landscape, arborist as required

Total cost: $50,000-$150,000+ depending on the project complexity.

Risk of Refusal or Conditions

If the DA is refused or approved with onerous conditions, you've spent significant money and potentially reduced the site's attractiveness.

Developer Preference

Many experienced developers prefer to buy unapproved sites so they can design their own project optimised for their target market, construction methodology, and financial model.

Your Design May Not Match the Market

A DA designed to your architect's vision may not align with what the eventual developer wants to build. They may need to lodge a new DA anyway.

When It Makes Sense

Get a DA when:

• The zoning is straightforward and approval is low risk
• You have the financial resources to invest upfront
• The site has complexity that a DA can resolve (e.g., demonstrating access or addressing flood)
• You want to sell unconditionally and quickly

Skip the DA when:

• The zoning is complex or contested
• You don't have $50,000-$150,000 to invest
• The site is clearly developable and developers can assess the potential easily
• Multiple developers are likely to want different designs

The Middle Ground: Concept Design

A cost-effective compromise is to commission a concept design without lodging a DA:

• Cost: $5,000-$10,000 (much less than a full DA)
• Shows the development potential visually
• Demonstrates yield and building form
• Doesn't lock the developer into a specific design
• Helps buyers run feasibility quickly

This approach often achieves 80% of the benefit of a DA at 10% of the cost.

Daniel McCormack

Managing Director, ACRES — Australian Commercial & Residential Group

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