Property developers rarely succeed by waiting for the perfect site to be advertised as a “development opportunity.”
Many potential development sites appear on the market as normal houses, vacant lots or residential properties. The opportunity comes from understanding what may be possible on the land and whether the numbers justify deeper investigation.
The development-site search is a filtering exercise
The objective is not to fully design every property you see. It is to quickly eliminate weak opportunities and focus detailed professional due diligence on the smaller number of sites that may stack up.
What is a development site?
A development site is land that may support a development outcome beyond its existing use, subject to planning approval, site constraints, design and commercial feasibility.
Depending on the property and planning controls, potential strategies may include:
Duplex Development
Two dwellings on one site where planning and physical site conditions may support dual occupancy.
Multi-Dwelling Development
Triplex, townhouse or other residential scenarios where zoning, site area and frontage may support greater density.
Greenfield / Vacant Land
Vacant or undeveloped sites that may support residential development subject to planning and servicing.
Knockdown-Rebuild
Existing-house properties where redevelopment may create a stronger use of the underlying land.
Start with the suburb, not the individual property
A practical development-site search usually starts by deciding which market or suburb you want to investigate.
That decision can be influenced by:
Buyer demand
Is there established demand for the type of dwelling product you intend to deliver?
Comparable sale values
Are completed duplexes, townhouses or new homes achieving values that support the development strategy?
Land values
Can sites still be acquired at a price that leaves room for development costs and risk?
Planning environment
Does the suburb contain zoning and planning conditions that create realistic development opportunities?
Construction economics
Can the intended product be built efficiently relative to the local end value?
Development activity
Are other builders and developers actively completing similar projects in the area?
Search ordinary property listings
Many viable development opportunities are not advertised with the words “development site.”
Developers often need to review ordinary residential listings and identify the characteristics that may indicate development potential.
Typical listing clues
Check zoning — but do not stop there
Zoning is one of the first planning indicators developers consider because it helps identify which land uses may be permissible.
But zoning alone does not establish development potential.
Two sites with the same zoning can have very different development outcomes.
Lot size, frontage, FSR, height, setbacks, constraints, access, slope and local planning controls may materially alter what can actually be achieved.
Review the main planning controls
Once a site appears potentially suitable, the next step is to understand the controls that shape the theoretical development envelope.
Zoning
What development types may be permissible?
Minimum lot size
Does the site satisfy relevant area requirements?
Frontage / width
Is the lot wide enough for the intended strategy?
FSR
How much gross floor area may potentially be accommodated?
Building height
What vertical development envelope applies?
Setbacks
How much of the site is affected by required separation?
Landscaping
What private open space or landscaped area requirements apply?
Parking & access
Can required vehicle access and parking be accommodated?
Review the physical characteristics of the site
A planning control may indicate what is theoretically possible, while the physical site determines how practical that outcome may be.
Land area
Larger sites may support broader development options, but usable site area matters more than the headline figure alone.
Frontage
Wide sites can provide greater flexibility for dwelling layouts, access, garages and subdivision.
Site shape
Regular sites can often be designed more efficiently than narrow, triangular or irregular parcels.
Slope
Steep land may require retaining, excavation and structural solutions that significantly increase cost.
Corner access
Corner sites can provide useful access and frontage opportunities depending on planning and design controls.
Screen for site constraints early
Some sites look attractive until environmental, infrastructure or title constraints are investigated.
Understand what the completed project may be worth
Development potential only creates value if the proposed product can be sold or retained at a value that supports the total development cost and risk.
Market evidence should therefore be considered alongside planning potential.
Comparable evidence should resemble the intended completed product.
Location, dwelling type, size, bedrooms, bathrooms, parking, condition, design and specification can all affect the relevance of a comparable sale.
Estimate the complete development cost
A site may look attractive based on land price and end value, but the development still needs to absorb the full cost of delivery.
Run a preliminary feasibility before committing to the site
Preliminary feasibility helps answer a simple but critical question:
Does the potential value of the completed development justify the acquisition cost, development cost and risk?
Simplified development assessment
Indicative end value / revenue
− Land acquisition
− Construction
− Site and external works
− Professional and statutory costs
− Finance and holding
− Selling costs
− Contingency
Compare opportunities instead of falling in love with one site
Developers often make better acquisition decisions when they can compare several potential opportunities rather than forcing one property to work.
A stronger process is:
Search a market
Identify multiple candidates
Screen planning and site conditions
Review preliminary feasibility
Compare opportunities
Investigate the strongest sites in detail
Why traditional development-site searching takes so much time
The information required to assess a potential site is usually spread across several different sources.
How BuildQuant Atlas helps find development sites
Atlas is designed to automate more of the first-pass development site search.
Instead of starting with one property address, Atlas allows users to select a NSW suburb and search available listings for potential development opportunities.
BuildQuant Atlas
Search NSW suburbs for potential development opportunities
Search the market, screen development potential and compare opportunities before committing significant time and cost to detailed site investigation.
Start 7-Day Free Trial7 days or 10 Atlas searches — whichever comes first
Finding development sites — frequently asked questions
Where can I find development sites in NSW?
Potential development sites can be found through ordinary residential property listings, vacant-land listings, local market knowledge, agents and specialist property sources. Many opportunities are not advertised specifically as development sites.
What should I look for in a development site?
Key factors include zoning, land area, frontage, site shape, planning controls, physical constraints, market evidence, construction costs and preliminary commercial feasibility.
How do I know if a property has development potential?
Development potential should be assessed by considering planning permissibility, site characteristics, applicable development standards, constraints and whether a viable design and commercial outcome may be achievable.
Is zoning enough to determine whether a property can be developed?
No. Zoning is only one part of the assessment. Lot size, frontage, FSR, height, setbacks, hazards, access and other planning and physical controls may materially affect the site.
Should I run a feasibility before buying a development site?
A preliminary feasibility is an important screening step before acquisition. Detailed professional feasibility and due diligence should follow for sites being seriously considered.
Can Atlas find development sites automatically?
Atlas searches NSW property listings at suburb level and helps identify properties with characteristics that may indicate development potential. It is a decision-support and screening tool rather than an approval authority.