A duplex, a five lot subdivision, and a 30 unit apartment block are three completely different businesses. Scale, capital, complexity, and risk all step up sharply. If you are new, start small and let the wins fund the next one.
What is a small development?
Dual occupancy, duplex, knock-down-rebuild with a granny flat, or a two lot subdivision. Typical end value $1.5m to $3m. Financeable through mainstream banks. Timeframe 12 to 18 months. Buildable by a residential builder. This is where almost every good developer starts.
What is a medium development?
Small townhouse or unit projects of 4 to 20 dwellings, or subdivisions of 3 to 15 lots. Typical end value $4m to $15m. Requires commercial construction finance and usually pre-sales. Timeframe 18 to 30 months. You need a builder with class 2 experience and a project manager if you are not doing it yourself.
What is a large development?
Anything bigger. Multi-stage subdivisions, mid-rise apartments, mixed use projects. End value $20m+. Bank finance requires 50 to 80 per cent pre-sales and heavy equity or a joint venture. Timeframe three to six years. You are running a business, not doing a project.
How does risk change with scale?
Small: manageable variances, one contract, one builder, one settlement window. If it goes wrong you lose equity, not your house.
Medium: cost blowouts and programme delays hit harder because you are paying interest on much more debt. Pre-sales protect you but you carry unsold stock at the end.
Large: everything above, plus market cycle risk over three to six years, contractor solvency risk, planning appeal risk, and complex funding structures. One rate cycle turn can move your feasibility by millions.
Where should you start?
Small. Every experienced developer I know made their first serious money on duplexes and small in-fill sites. It teaches you feasibility, council process, builder management, and end-sale strategy on a scale that will not ruin you if you mis-step.
What returns should you expect?
Small residential: 15 to 25 per cent margin on cost if the site and design are right. Medium: 18 to 25 per cent on cost with more risk. Large: often 20 to 30 per cent on cost, but over years and with real cycle exposure.
Important note
This article is general information only, not legal advice. Queensland property law changes and every situation is different. Before you act, speak with a qualified solicitor or licensed conveyancer, and verify current requirements with the relevant Queensland Government source (Queensland Government, Queensland Law Society, Office of Fair Trading, or the QBCC where applicable).
Where to from here
Thinking of developing or selling a completed project? Let's talk strategy and end value, or book a proper appraisal so we can map the numbers together. Curious what a finished product might be worth today? Jai will give you an instant estimate.
Frequently asked questions
Thinking of selling in Logan Reserve?
Get a free appraisal from Junaid Ally. Call 0410 218 499 or visit junaidally.com/appraisal.
