Frequently asked questions
What is my development site worth?
Developers value sites differently to the residential market. Their assessment starts with what can be built under the current or proposed planning controls, then works backwards, deducting the costs and required profit to carry out the development. What remains is what they can pay for the land, known as the residual land value.
At Chem Property, we run these same numbers for owners, providing an objective view of your site's realistic value before you engage with any developer.
A developer has approached me about my property. What should I do?
Before engaging with a developer, it is worth obtaining expert advice on your property's value and having professional representation throughout the process. Chem Property can act as your vendor advisor, helping you assess your options, negotiate with developers and maximise the value of your property.
How do I know if my property has development potential?
Several factors determine whether your property has development potential. The most important are:
Zoning: Whether your council's Local Environmental Plan (LEP) permits medium or high-density housing on your site. In Sydney, recent changes under the NSW Low- and Mid-Rise Housing SEPP have expanded what is permissible in many areas.
Lot size and dimensions: Developers generally need a minimum lot area to achieve a viable project. Dimensions matter as much as area, and a narrow site may limit the design options available.
Amalgamation potential: If your property alone is too small, combining it with one or more neighbouring properties can unlock more value.
Proximity to transport & shops: Sites within 800m of train stations and shops have generally seen an increase in density controls, driving developer interest.
Chem Property offers an initial site assessment, reviewing your property's planning controls and development feasibility.
Will I get more money selling to a developer?
We assess development sites across Sydney every week. The reality is that not every property is more valuable as a development site.
Developers don't value your property the same way a homeowner would. They assess what can be built on the site and work backwards to determine the maximum amount they can pay for the land, often referred to as the 'residual land value'.
In some cases, particularly in Sydney's Eastern Suburbs and Lower North Shore, landowners have achieved above market values by selling to developers.
It's important to get a site-specific assessment to know what your site is truly worth and whether it makes sense to sell to a developer.
What is a residual land value calculation?
Residual land value is the maximum price a developer can pay for a site while achieving their required profit margin.
Developers work backwards from the project's Gross Realisation Value (GRV), the estimated revenue from selling the completed development. From this, developers deduct GST, construction costs, consultant and design fees, council contributions, holding and finance costs, along with their required profit margin, typically around 20%. The amount remaining is the residual land value.
Chem Property prepares indicative residual land value analyses for every site, ensuring it is priced correctly for the developer market.
How long does it take to sell a development site in Sydney?
The timeline for a development site sale in Sydney depends on the complexity of the transaction. For a straightforward sale, the process typically takes 3 to 6 months from initial engagement to exchange of contracts. For more complex transactions, including strata collective sales and site amalgamations involving multiple owners, the pre-exchange period can extend to 6 to 12 months or longer.
Once contracts are exchanged under an option agreement, the developer typically has 18 to 24 months to obtain development approval before completing the purchase. This means the full process from first engagement to settlement can span 2 to 3 years.
Chem Property manages the entire timeline on behalf of vendors, keeping all parties aligned from initial assessment to final settlement.
I received an offer from a developer. How do I know if it's fair?
At Chem Property, we help owners assess developer offers in the context of the broader market, current developer demand, planning potential, transaction structure, and comparable development site sales.
In some cases, an offer may genuinely represent strong value, balanced with reasonable commercial terms and submitted by a credible, well-capitalised developer. Where that is the case, we may recommend proceeding.
In other situations, an offer can appear attractive on paper but may not be from a credible developer or include conditions that materially reduce its value.
A lower headline figure from a stronger and more experienced developer may ultimately represent a far more secure and realistic pathway to a successful transaction.
Having expert advice throughout the process is critical to ensuring offers are properly assessed, negotiations are handled properly, and the transaction is structured in a way that maximises both value and certainty.
Do I need to go to market to sell to a developer?
Not necessarily.
In fact, many of the strongest development site transactions occur off-market, without ever being publicly advertised.
Rather than running a broad public campaign and exposing the site to the entire market, a more effective approach is often to engage a carefully targeted group of developers who are actively acquiring in the area, understand the planning dynamics, and have the financial capacity to transact.
This creates a more controlled and strategic process, attracting genuine and qualified interest while avoiding much of the disruption, speculation, and unnecessary exposure that can come with a public sale campaign.
I own an apartment in a strata block. Can we sell to a developer?
Yes. Strata buildings can be sold to a developer in what is known as a collective sale or strata renewal, and in some cases this is more valuable than selling units individually.
When a developer buys an entire building, they are paying for the development potential of the land, not the value of the existing units. This means the collective sale price can substantially exceed the sum of each unit's individual market value.
For a collective sale to proceed, owners in the building need to be aligned on price expectations, timing, and how the proceeds will be split.
Chem Property advises strata committees and individual strata owners on the feasibility of a collective sale, manages the owner alignment process, and connects buildings with qualified developers.
What is the strata renewal process in NSW?
The strata renewal process in NSW is the legal mechanism that allows owners in a strata scheme to collectively sell their building to a single buyer for redevelopment. It is governed by the Strata Schemes Development Act 2015 (NSW).
The building's strata committee or a group of owners prepares a strata renewal proposal; the proposal must be supported by at least 75% of owners by unit entitlement; if passed, a formal plan is registered and the sale can proceed.
In practice, reaching 75% is only the legal minimum. Developers strongly prefer 100% owner alignment before making an offer, because any dissenting owner can challenge the process and create significant delays.
Chem Property's role in strata renewal transactions is to manage the owner alignment process, working with each individual owner to understand their situation, address concerns, and build consensus before any offer is sought from the market. This is some of the most complex and sensitive work in the development site market, and it is a core specialisation of Chem Property.
If there are multiple owners, how do we split the total purchase price?
In a strata collective sale, the proceeds are often divided according to unit entitlement. In a site amalgamation involving neighbouring houses, the split is typically based on land area.
In reality, however, it is rarely that simple. One owner may have a larger unit entitlement or land holding but have not upgraded their property in decades, while another may have recently completed a major renovation despite holding a smaller entitlement or lot size.
As a result, collective sales and amalgamations often require balancing land value, existing improvements, and what each owner considers fair.
Chem Property facilitates this alignment process early, helping owners establish a clear and commercially sensible framework before developer negotiations commence. This helps avoid the common situation where a deal stalls because owners cannot agree on how the proceeds should be divided.
Try our purchase price allocation calculator to model straight split, unit entitlement, land rate and hybrid methods against your own numbers.
How do the NSW Low- and Mid-Rise Housing Reforms affect my property?
The NSW Low- and Mid-Rise Housing SEPP (State Environmental Planning Policy) is a significant planning reform that came into effect in February 2025. It overrides local council restrictions in many residential zones across Greater Sydney, permitting medium-density housing, including terraces, townhouses, and low-rise apartment buildings, on sites that were previously limited to lower-density development.
For property owners in affected areas, the potential impact may be material: your site may now be worth significantly more to a developer than it was before the reform, because more can be built on it.
Chem Property can assess whether your property is affected by the Low- and Mid-Rise Housing SEPP and advise on what the change means for its development value.
See how these reforms are playing out locally in our guides to the Mosman Master Plan, Woollahra Station rezoning, Bondi Junction Master Plan and Inner West Our Fairer Future.
How do I know if my site will qualify for the HDA?
There is no simple yes or no answer without a proper HDA site assessment. A site may be suitable for the Housing Delivery Authority pathway if it is well located, capable of delivering significant housing supply, likely to support 100 or more homes, and supported by a credible planning and delivery case. Owners should not assume HDA qualification based only on land size, planning uplift or developer interest.
Can I lodge the HDA as an owner, or does a developer need to do it?
An ownership group can elect to pursue the HDA pathway, but delivery capability is a major part of the assessment story. In practice, it is usually stronger to have a credible developer involved before submitting an EOI, because the proposal needs to show more than planning ambition. It needs to show a realistic pathway to delivery. Chem Property can help owners assess the opportunity, coordinate the group, and bring the right developer into the process at the right time.
Do all owners need to be aligned before exploring the HDA?
Yes. If the HDA opportunity relies on multiple owners or an amalgamated site, owner alignment is critical. All owners need to understand the process, potential value, risks, timing and available pathways before the group progresses too far. Early alignment helps avoid confusion later and gives the ownership group a clearer position when engaging with developers or progressing an HDA strategy.
When should a developer be involved in an HDA strategy?
A developer should generally be involved before an HDA EOI is submitted. The goal is to introduce a credible developer at the point where they can strengthen the EOI and support the delivery case.
Is the HDA pathway guaranteed to increase my property value?
No. The HDA pathway may create a pathway to additional property value, but only if the site can support a credible planning and commercial outcome. Uplift depends on the site, existing controls, feasibility, owner alignment, developer demand and the requirements of the assessment pathway. The HDA should be treated as a strategic opportunity, not a guaranteed result.
Chem Property is a trading name of CHEM PTY LTD (ABN 53 675 862 049, ACN 675 862 049), NSW real estate corporation licence 10155386.