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What are the key financial metrics for assessing the feasibility of a medium-density residential development in Queensland?
Key financial metrics for assessing Queensland medium-density feasibility start with a robust Profit on Cost (POC) and Profit on Gross Realisation Value (POR), typically targeting 18-25% and 15-20% respectively, complemented by a compelling Internal Rate of Return (IRR) reflecting the project's duration and risk profile. Equally critical are the Development Yield relative to market cap rates, strong Loan-to-Cost (LTC) and Loan-to-Value (LVR) ratios for funding leverage, and rigorous sensitivity analysis on sales rates, construction escalation, and holding costs to mitigate risks inherent in Queensland's dynamic planning and market cycles.
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Last Updated: 12 June 2026
Ref: QA-15936ED3