19/05/2026
When developers value your site, they don't start with what your neighbour sold for.
They start with what they can sell the final product for.
The math runs backwards. Take the gross realisation: every unit, every block, every townhouse at the finish. Subtract the build cost, holding cost, selling fees and government fees. Subtract the 20-30% margin developers need to hit in regional markets. What's left is the maximum they can pay you for the site.
A worked example. 10 townhouses at $650k each is $6.5M gross realisation. Less $4.2M in total costs. Less $1.3M margin. Residual land value: $1.0M.
If you ask $1.5M for that same site, the deal doesn't happen. Not because anyone's being unreasonable. Because the math breaks.
This is why two vendors with the same land can end up in completely different places. One sells inside 60 days. The other sits on market for nine months and withdraws.
Swipe through for the full breakdown.
If you've got a site that might suit development, give me a call on 0475 814 857. I'll run the numbers on it with you. No obligation, just a straight read on what your land is actually worth to a developer.
