What is residual land value?
Residual land value is the maximum modelled land price that meets your target development margin after costs, selling expenses, GST estimates and finance. It is a negotiation input, not an independent market valuation.
Reviewed 12 September 2026 · General educational guidance
How the solver works
Feasomate tests different land prices and recalculates the project until margin on total cost approaches your target. With automatic general NSW duty selected, duty changes with the tested land value. Manual duty stays fixed, so that scenario requires a separate duty check.
Margin on cost is different from margin on revenue
A project with $3 million revenue and $2.5 million total cost produces $500,000 profit. Margin on cost is 20%; margin on revenue is 16.7%. These are illustrative arithmetic figures, not local price or construction benchmarks. Always check which denominator a comparison uses.
When the result needs specialist work
Feasomate uses a single project programme, one average dwelling price and an all-sales-at-completion assumption. Staged settlements, retained dwellings, valuation-based margin scheme cases and complex funding structures need more detailed modelling. If the target cannot be reached even with free land, a zero residual does not mean the project is feasible.
NSW duty limitations
The optional automatic estimate uses the 2026/27 general schedule on purchase price. Revenue NSW generally assesses the greater of consideration and market value. Verify premium residential duty, foreign surcharge, concessions and the applicable contract year. Enter a verified manual amount when the general estimate does not fit.
Official sources
Project-specific planning and tax advice remains necessary. Read the calculation disclosures.
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