Colliers Engineering & Design has released its 2025 Land Lease Community Cost Per Site Report: QLD, NSW & VIC, offering detailed insights into the economics of developing land lease communities across Australia’s East Coast.
The $12 billion land lease community sector continues to attract major domestic and international investment – including from Macquarie Asset Management, backed by its $2.9 billion Macquarie Real Estate Partners fund – as demand for high-quality, affordable housing for baby boomers accelerates.
Drawing on feasibility studies and completed projects covering around 3,500 sites across Queensland, New South Wales and Victoria, Colliers reports an average development cost of approximately $127,000 per site.
Queensland recorded the highest civil costs ($64,824) but lower electrical and communications outlays ($14,899), making it the most balanced and cost-effective market overall. Victoria showed moderate spend across both categories ($63,346 and $15,930 respectively), while New South Wales posted the lowest civil costs ($52,362) but the highest electrical and communications expenditure ($18,388).
For benchmarking, Colliers assumed an average of $23,000 per site for earthworks and $27,000 per site for infrastructure charges.
“The long-term demand fundamentals for LLCs remain strong, supported by significant population growth in the older demographic over the next decade,” said Nick Brisbane, Director, Economics, Colliers Urban Planning.
“Sales at LLCs are closely tied to local residential markets… Understanding local residential market dynamics is critical.”
