Formula
Development margin = (Net realisation − TDC) / Net realisation.
Benchmarks
15–20% is the standard target for build-to-sell apartments in Australia. Townhouses often run slightly lower in margin but higher in IRR thanks to staged settlements.
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Development margin — guide and benchmarks
Development margin measures pricing power. The complement to profit on cost, with benchmarks for Australian residential.
4 min readUpdated May 2026
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