Full Acquisition Mandate · Development
Development Site Acquisition Tested Against Highest and Best Use
Property type
Infill development site
Location
Established Brisbane suburb, medium-density planning overlay
Initial asking
Set by the vendor with reference to comparable improved sales rather than site value
Outcome
Negotiated with reference to residual land value rather than the vendor's initial asking price
This scenario is representative of the Hastings Beaumont methodology described on our services page. It is not a record of an actual client transaction, and the figures shown are illustrative rather than a specific client result.
The client brief
A developer client sought an infill site suitable for a medium-density residential product, requiring the site to be tested against planning controls and residual land value before any offer was considered.
Acquisition strategy
- The planning envelope was reviewed to confirm permissible yield and any overlays affecting the achievable product.
- A residual land value was calculated under the assessed highest and best use, rather than accepting the vendor's comparable sales evidence at face value.
- The site was assessed against alternative development scenarios to confirm the client's intended use produced the strongest residual value.
Market analysis
- Recent site sales in the catchment were reconciled on a per-dwelling and per-square-metre-of-site basis, adjusted for differing planning entitlements.
- Competing approved supply nearby was reviewed to assess absorption risk for the completed product.
- Council planning history for the site and adjoining lots was checked for prior refusals or conditions relevant to feasibility.
Negotiation strategy
- An offer was structured around the residual land value calculated during underwriting, rather than the vendor's improved-sales comparison.
- A due diligence period was negotiated to allow for a town planning opinion prior to the contract becoming unconditional.
- Settlement was structured to align with the developer's anticipated approvals timeline.
Outcome
Result
Final price
Negotiated with reference to residual land value rather than the vendor's initial asking price
Saving achieved
An outcome aligned with the underwritten feasibility, representative of the approach applied to development site acquisitions
The developer secured a site with a confirmed planning pathway and a purchase price supported by feasibility modelling rather than comparable improved sales alone.
More scenarios
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