56 Richardson Street, ESSENDON VIC 3040
Development Feasibility Analysis in Essendon, VIC
Zoned HCTZ2 in Essendon, this 767 sqm site is assessed for 3 townhouses using identical cost and revenue assumptions to nearby properties in the same zone. Total costs of $3.85 million exceed revenue of $3.75 million by $93,744, producing a negative margin of 2.4%. The land cost of $1,042,500 is the binding constraint.
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Frequently Asked Questions
What development outcome is modelled for this Essendon site?
Three townhouses on a 767 sqm HCTZ2 site. Sale prices are set at $1,251,000 per dwelling based on local market data.
Why is this project not viable despite a small negative margin?
A negative margin means costs exceed revenue regardless of how small the gap. No developer return is built into a 2.4% loss. Lenders also require a minimum margin of 15% or more for project finance.
Is the land cost consistent with nearby Essendon HCTZ2 sites?
Yes. Multiple HCTZ2 properties in this analysis are assessed at a $1,042,500 land value, reflecting consistent market conditions across the precinct.
What would a 15% margin require in terms of sale price?
To achieve a 15% margin on $3.85 million in costs, revenue would need to reach approximately $4.52 million, or about $1,506,000 per townhouse. That is $255,000 above the current benchmark.
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DISCLAIMER: This analysis is generated by automated algorithms for informational purposes only. It does not constitute financial, investment, or legal advice. Actual development costs, revenues, and returns may vary significantly from these estimates. Users should consult qualified professionals including a registered quantity surveyor, accredited town planner, and solicitor before making any investment decisions. DA Leads Australia Pty Ltd holds no Australian Financial Services Licence (AFSL) and is not authorised to provide financial product advice under the Corporations Act 2001 (Cth).