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12 townhouses, in two stages.

Sample assumptions, base case outputs and the staged settlement profile that pulls equity out before stage two starts construction.

  • Scale12 dwellings
  • Program24 months
  • Equity IRR21.0%

02 / Sample assumptions

The market context behind the numbers.

Pricing benchmarks, build rates and finance terms used in this townhouse example. Every one is editable in Popurise.

Assumption sheet07 lines
01
Pricing benchmark
Suburb median plus 6% for new product
02
Avg sale price
$1,150,000
03
Construction rate
$2,500 / m² built area
04
Civils and shared
$0.9M one-off
05
Selling cost
2.5% on resale of completed dwelling
06
Senior debt
65% LVR, 8.0% all-in
07
Stage release
Stage one settles before stage two starts

03 / Key inputs

The inputs that drive the deal.

Grouped the way Popurise groups them. Change a category, watch the townhouse output set respond.

0104 items

Site and scheme

Site area
2,400 m²
Zone
GRZ1
Built area total
1,980 m²
Dwellings per stage
6 + 6
0206 items

Cost stack

Land
$3.20M
Civils and shared
$0.90M
Construction
$5.00M
Professional fees
$0.45M
Contributions and authority
$0.55M
Finance and selling
$0.90M
0304 items

Revenue and timing

Gross realisation
$13.80M
Stage one settlement
Month 14
Stage two settlement
Month 22
Selling cost
$0.35M

04 / Base case outputs

The output set, in full.

Every number a developer wants on the screen for a townhouse deal, in one place.

Hero outputEquity IRR
21.0%
Secondary metrics08 lines

  • Gross realisation value

    $13.80M

  • Net realisation

    $12.70M

  • Total development cost

    $10.90M

  • Profit

    $1.80M

  • Profit on cost

    16.5%

  • Development margin

    14.2%

  • Peak debt

    $7.10M

  • Peak equity

    $2.60M

05 / Scenarios

Base, downside, stretch. Side by side.

Three scenarios on the same townhouse project. No copied files. The decision is which one to take to investment committee.

Base case

base

Two staged settlements, current pricing.

  • Profit on cost16.5%
  • Equity IRR21.0%
  • Profit$1.80M
  • Peak debt$7.10M
Verdict

Clears a typical boutique developer hurdle on both profit and IRR.

Downside

downside

Avg price falls 4%, build rate lifts 3%.

  • Profit on cost9.4%
  • Equity IRR13.2%
  • Profit$1.02M
  • Peak debt$7.30M
Verdict

Profit drops but capital is intact. Stage release still gives equity an exit.

Stretch

stretch

Single build campaign instead of two stages, civils 10% lower.

  • Profit on cost18.4%
  • Equity IRR18.7%
  • Profit$2.00M
  • Peak debt$8.20M
Verdict

Higher profit but lower IRR. Stage release wins the time value race.

06 / Decision takeaway

Staging is the lever that lifts IRR even when total profit barely moves. Equity recycles out of stage one before stage two runs at full debt. A single campaign is cheaper to build and worse for the equity story.

Start modelling free Open this example in Popurise. Change any assumption. Watch the output set respond.
Related

Townhouse feasibility model

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Residual land value calculator

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Residential feasibility guide

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Questions

Townhouse feasibility, answered.

How Popurise treats the townhouse example you just read.

Why two stages instead of one campaign?

Stage release pulls cash out earlier, which lifts equity IRR. The cost is a slightly higher overall build cost and a longer program.

Are these numbers a build quote?

No. They are illustrative rates that approximate a Melbourne inner east site in 2026 and need a quantity surveyor before they go to committee.

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