What would it cost to develop my block, and would the numbers stack up?
There is no single price for developing a block. A realistic feasibility assessment should consider the whole project, including:
- Build cost per dwelling — the estimated construction cost for the type and number of homes being considered.
- Design and consultants — planning, building design/architecture, surveying, engineering, landscaping and other specialists that may be required.
- Approvals and statutory costs — DA and other applicable approval costs.
- Lease Variation Charge (LVC) — where a chargeable Crown lease variation is required. Eligible RZ1/RZ2 Missing Middle projects can currently receive a time-limited 50% LVC reduction, subject to the applicable eligibility requirements. (planning.act.gov.au)
- Site and infrastructure costs — potentially including demolition, earthworks, utilities, stormwater, driveways and other works required for the particular site.
- Time and finance — including finance costs, holding costs, project duration and an appropriate contingency.
These costs can then be compared with the likely value of the completed dwellings or development to determine whether the opportunity is financially worthwhile.
A Block Opportunity Plan can bring these considerations together early by testing what could realistically be developed, what it may cost and what the completed development could potentially be worth.
Reference: ACT Planning – Missing Middle Housing Reforms — current Missing Middle reforms, including the time-limited 50% LVC reduction for eligible RZ1/RZ2 developments and applicable eligibility/timeframe conditions – https://www.planning.act.gov.au/planning-priorities/missing-middle-housing-reforms
Short Answer
The cost depends on what your block can support, how many dwellings are proposed and the complexity of the site. Whether the project is financially worthwhile depends on whether the expected completed value justifies the total development cost.
That is what a Block Opportunity Plan is designed to test. It provides an early assessment of the development opportunity, key project costs and potential value, helping determine whether the numbers are likely to stack up before significant money is committed to detailed design and construction.
Detailed Explanation
Development potential and development feasibility are not the same thing. A block may be capable of accommodating additional dwellings under the Territory Plan, but the cost of delivering those dwellings may make one development option substantially more attractive than another.
LVC can be an important part of that calculation. From 1 July 2026, the ACT Government updated the LVC framework, including codified charges for variations involving dwelling numbers. A 50% time-limited reduction is currently available for qualifying Missing Middle developments in RZ1 and RZ2 that add one or more dwellings and satisfy the applicable eligibility and completion timeframes.
No minimum block size does not remove the need for planning assessment.
Would you like to know what these rules mean for your property?
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