Development Sites

A development site is a parcel of vacant land or an existing property that has the potential to be developed, either through renovation, subdivision or new construction.

These sites can range from vacant lots in suburban areas to large industrial or commercial spaces in metropolitan zones. Development sites provide investors with the ability to create value by transforming vacant land or property for different uses. For example, a plot of land in a growing suburb could be developed into a block of apartments, or an outdated industrial facility could be converted into a mixed-use complex.

Demand for development sites has surged in recent years due to increased urbanisation, population growth and housing shortages in major Australian cities. Investors and developers are seizing opportunities to meet these growing needs by developing residential, commercial and industrial projects.

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What does
the future hold?

As cities expand, the demand for well-located development sites is only expected to grow particularly with state governments likely to continue to push for higher-density developments to accommodate growing populations. Rezoning will, in turn, open up new areas for development, creating a pipeline of prime sites ripe for investment. However, competition for prime locations and the increasing complexity of planning regulations means careful due diligence will be more important than ever.

Why buy
development sites?

Development sites offer significant upside potential for investors due to their flexibility and capacity for high returns. With proper planning, a single site can be transformed into a multi-unit residential building or a mixed-use property development, dramatically increasing value. Moreover, development sites also provide the flexibility to tailor projects based on current market needs, whether it’s residential, commercial, or industrial spaces.

However, it’s important to consider the potential risks. Property development is often complex, and factors like project delays, planning approvals and cost overruns can impact your profitability. To mitigate these risks, investors need to conduct thorough due diligence and work with experienced professionals who understand the market and the development process.

+ How to maximise your return

To get the most out of your development site, it’s essential to have a well-researched plan and team of professionals. Conducting a detailed feasibility study will help you estimate costs and potential returns before committing to a purchase. Partnering with experienced architects, builders, finance brokers and legal advisers can help ensure the property development process runs smoothly. Additionally, securing the right buyer’s agent, like Costi Cohen, can make a world of difference in terms of identifying prime opportunities and navigating the complexities of the purchase process.

What are the key considerations when buying
development sites?

When investing in development sites, you should consider several factors that can directly impact the success of your project:

Location: The value and future potential of a development site are largely determined by its location. Proximity to transport, schools, retail hubs and employment centres can significantly affect the demand for residential or commercial spaces once your project is complete.
Zoning: Ensuring the site is correctly zoned for your intended development is critical. Different zones (e.g. residential, commercial, industrial) dictate what can be built on the land. A thorough understanding of local zoning laws will help avoid costly planning issues down the line.
Planning restrictions: Each local council has its own set of planning regulations that can affect your development. These restrictions may include limits on building height, floor area ratios or even specific design guidelines. Checking the relevant planning schemes early in the process will help you understand what is possible on the site.
Heritage restrictions: Some property development sites may be subject to heritage overlays, which impose strict limitations on what can be demolished or altered. It’s essential to confirm whether the site falls under such protection, as heritage restrictions can impact your development’s scope and costs.
Infrastructure and services: Development sites require adequate access to essential infrastructure, such as roads, utilities and public transport. Assess whether the site has access to these services or if significant upgrades will be needed, as this can impact both cost and timelines.
Environmental considerations: Some sites may have environmental constraints, such as flood zones or bushfire risks, which could influence both design and insurance costs. Conducting environmental assessments early in the process is essential for mitigating risks and managing costs.
Vacancy rates and demand: Understanding the vacancy rates and demand for the type of property development you’re planning is crucial. If you’re looking to build commercial or residential units, research the local market to ensure there’s enough demand to support your project once completed.

Why buy with
Costi Cohen?

Risks of going solo
Buying development sites on your own can be overwhelming and risky. Misinterpreting zoning regulations, underestimating development costs or overlooking potential hurdles in the planning approval process can lead to significant financial losses. You also risk overpaying for a site or purchasing land that has hidden issues, such as contamination or heritage restrictions.

The Costi Cohen advantage
As one of Australia’s leading commercial buyer’s agencies, we have a deep understanding of the market and a track record of helping investors secure the right development sites. Our team conducts thorough due diligence, ensuring that all relevant location factors are carefully considered. We also provide tailored advice to help you maximise the return on your investment.

How to finance the purchase of
development site

Financing a development site often requires a more specialised approach compared to traditional property purchases. Investors typically use a combination of financing options, including development loans, equity funding or private capital.

Development loans are specifically designed to finance both the acquisition of a site and the construction or renovation of the property. These loans usually require a higher deposit and come with stricter lending criteria than residential loans. Lenders will typically evaluate the site’s potential, the developer’s experience and the project’s feasibility before approving the loan.

For larger projects, investors may also seek joint venture partners or private investors to share the financial risk and maximise the capital available.

At Costi Cohen, we can connect you with trusted finance brokers who specialise in development funding.

Explore some of our
Development Site Purchases