THE PROPERTY DEVELOPMENT REVIEW
Funding structures and pre lease considerations Capital is available and relatively affordable. However, it is more selective and increasingly focused on risk allocation. Long term leasehold structures are gaining renewed attention. For certain asset classes, they allow landowners to retain long term income while enabling operators to deploy capital into development rather than land acquisition. In the right circumstances, these structures can unlock projects that would otherwise stall on feasibility. Pre leasing and early operator alignment also continue to play a critical role. Income certainty, even on a transitional basis, remains one of the most effective tools for improving bankability and expanding the buyer pool. A timely theme: planning certainty is appealing If there is one theme shaping Brisbane’s development site market in 2026, it is this: Quality assets are always attracting the strongest demand & planning certainty has become very appealing. Buyers are increasingly prepared to pay for certainty, whether that comes from existing development approvals, government led processes, clear planning intent, or reduced appeal risk. Conversely, sites with ambiguous pathways are facing sharper scrutiny and greater pricing pressure. For developers and capital partners, the implication is clear. Where certainty can be demonstrated, demand is evident and competition follows. In Brisbane’s current market, the groups succeeding are not always the most obvious, they are the ones who can show they will deliver.
irreplaceable location, transport connectivity, and long term relevance. Large scale CBD sites are back in play, not as short term trading opportunities, but as platforms for multi stage, multi cycle development. Across all of these locations, the common thread is clarity. Developers are prioritising sites where development approvals are in place or planning intent is well articulated, infrastructure responsibility is understood, and the pathway to delivery can be realistically modelled. Strategies Buyer led off market transactions are often the first preference for developers. These transactions allow buyers to negotiate terms that suit their risk profile in a less competitive environment, often with greater flexibility around timing, conditions, and structure. However, these outcomes are not always preferred by property owners. In many cases, well structured competitive processes continue to deliver superior results, particularly where there is depth of demand and clarity around the asset’s development potential. The most effective strategies align the process to the nature of the asset and the motivations of the vendor, rather than defaulting to one approach.
Pricing and feasibility trends The feasibility conversation has matured.
Buyers are no longer stretching assumptions to justify land values. With interest rates higher and capital more disciplined, developers are taking a more conservative approach to underwriting. Greater attention is being paid to what can realistically be delivered, how long it will take, and where risk genuinely sits. Construction costs, certainty of pricing, and contractor capacity remain central considerations. Feasibilities are being stress tested harder, contingencies are being rebuilt, and risk premiums are being priced more transparently. Where pricing is holding up, it is typically because one or more of the following applies: • The planning pathway is clearer than competing options • The site supports staging or mixed use resilience • There is holding income that reduces cash drag during approvals Sites lacking these attributes are still transacting, but often at recalibrated land values or through more creative deal structures.
March / April 2026 – 73
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