Total development cost (TDC)
Total development cost is the full cost of delivering the project — land, construction, professional fees, statutory contributions, finance and contingency, all in.
Formula
Sum every cost line below the revenue line. TDC is the denominator of profit on cost.
Why it matters
TDC is the denominator of profit on cost — the most-quoted residential feasibility metric. Underestimate TDC and the deal looks better than it is; overestimate it and you walk away from work that would have made money. Honest TDC is what separates a feasibility from a wish list.
Worked example
For the same Waterloo scheme:
- Land acquisition: $7,200,000
- Construction (28 units × $4,200/m² × ~2,900 m² GFA): $12,180,000
- Professional fees (8% of construction): $974,000
- Statutory contributions and authority fees: $1,150,000
- Finance costs: $1,420,000
- Marketing and selling: $580,000
- Contingency (5% of construction): $609,000
TDC = $24,113,000.
Questions
Frequently asked
Does TDC include the developer's profit?
No. TDC is cost only. Profit sits below TDC and is the difference between net realisation and TDC.
Should land be in TDC?
Yes. Land acquisition cost is part of TDC. Stamp duty and legal costs sit alongside land in the same group.
What's the right contingency to apply?
5–7.5% on construction is typical for residential apartment work in Australia. Lenders will often impose their own minimum.
See these numbers in your own feasibility.
No spreadsheets. No setup. Fourteen-day free trial, no credit card.