iKey Facts
- •Higher-density zoning (LMR → MDR → MU1) typically lifts land value 50-150% per zone step
- •Site size matters: 1,000-2,500 sqm is the sweet spot for boutique apartment development in Brisbane
- •Corner sites command 5-15% premium over interior sites of equivalent size and zoning
- •Sites within 800m of new infrastructure (train stations, Olympic venues) often trade at 30-60% premiums
- •ACRES advises on what makes land valuable across SEQ — contact 07 3096 0542
The Short Answer
Eight specific characteristics drive what developers pay for land. Sites with most of these eight typically command top-of-market pricing; sites with few of them trade at residential-equivalent or below.
1. Higher-Density Zoning
The single biggest value driver. Each zone step (Low Density → LMR → MDR → MU1 → HDR) typically adds 50-150% to land value, holding everything else constant. Why: higher zones permit more dwellings per square metre, and developers pay for what they can build.
A 1,000 sqm Brisbane site:
- Low Density: $900k-$1.4m
- LMR: $1.5m-$2.5m
- MDR: $2.5m-$4.0m
- MU1: $4.0m-$8.0m+
2. Optimal Site Size
There's a sweet spot for development-site sizes:
- 400-700 sqm: dual occupancy or boutique townhouse — narrow buyer pool
- 700-1,500 sqm: small apartment buildings or 4-8 townhouses — strong buyer pool
- 1,500-2,500 sqm: mid-tier apartment developments — institutional and developer interest
- 2,500-5,000 sqm: institutional-scale projects — premium pricing
- 5,000+ sqm: master-planned communities or major BTR — specialised buyer pool
3. Regular Site Shape
Rectangular sites with a regular shape are easier to design efficiently. Triangular, L-shaped, or extremely narrow sites lose 5-20% of theoretical value through design constraints.
4. Wide Frontage
Wider street frontage allows better building entry, services access, and landscape design. A 20m+ frontage typically commands 5-10% premium over a 10-12m frontage of the same total area.
5. Corner Location
"Sites with most of these eight typically command top-of-market pricing; sites with few of them trade at residential-equivalent or below."
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Two street frontages enable better building layout and architectural impact. Corner sites typically command 5-15% premium. See Why Your Corner Block Could Be Worth More Than You Think for the full case.
6. Strong Services Capacity
Sewer, water, stormwater, electricity, and telecommunications connections at the boundary with capacity for the development. Sites requiring service upgrades or headworks contributions trade at 5-15% discounts.
7. No Major Overlays
Heritage, character, flood, or contamination overlays can reduce land value by 15-60%. Sites without these overlays — or where any applicable overlays don't materially constrain development — command top pricing.
8. Strategic Adjacency
Within 800m of new infrastructure (Cross River Rail station, Olympic venue, hospital, university), within an actively-amalgamating block, or in a corridor under planning review — these factors can lift price 30-60% above pure feasibility-based pricing.
What Doesn't Matter (As Much As You Think)
Some factors get over-weighted by sellers:
- Existing house quality — the developer is demolishing it
- Existing improvements (pool, landscaping, renovations) — also being demolished
- Recent comparable house sales — relevant only as a floor (residential value), not a ceiling
- Sentimental factors — irrelevant to developer pricing
Quick Self-Assessment
Score your site against the 8 factors. Sites scoring 6-8 of 8 typically command top-of-market development pricing. Sites scoring 3-5 of 8 trade somewhere between development and residential value. Sites scoring 0-2 of 8 are usually best sold as residential, not development.
For a more rigorous assessment, ACRES provides free indicative valuations at acres.au/valuation.
Frequently Asked Questions
Can a small site (<500 sqm) be valuable to developers?
Sometimes — if amalgamatable with neighbours, in MU1 zoning, or on a strategic corner. Standalone small sites often have limited uplift.
Highest-leverage thing to make land more valuable?
Almost always: explore amalgamation with neighbours. Two amalgamated sites often trade for 50-100%+ more than the sum of standalone parts.
Does run-down house condition matter?
Not really. Developers price the land, not the house. Run-down character homes carry less risk than recently-renovated ones.
Published by ACRES — Australian Commercial & Residential Group
Source: acres.au/insights/what-makes-land-more-valuable-to-developers | 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
