Property Development Finance 101: Funding Your Next SEQ Project

South East Queensland is one of the busiest development regions in the country, and it isn't slowing down. Between Brisbane, the Gold Coast, Ipswich, Logan, Moreton Bay and the Sunshine Coast, the Queensland Government's ShapingSEQ regional plan is guiding the region toward an extra 2.2 million residents by 2046, with 34,500 new homes needed every year to keep pace. For developers, that means opportunity. But opportunity only turns into a finished project if the funding is structured properly from day one.

If you're weighing up how to fund your next SEQ development, whether it's a duplex, a townhouse build, or a commercial project, this guide walks through the basics of property development finance and what to consider before you approach a lender.

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What Is Property Development Finance?

Property development finance is funding used to acquire land and construct a residential or commercial project. Unlike a standard home loan, it's typically drawn down in stages against your build program and repaid on sale, lease or refinance once the project is complete.

Lenders assess these deals differently to a straightforward mortgage. They're looking at the project itself: site feasibility, presales, construction costs, your builder's track record, and your exit strategy. That's why development finance is usually arranged through a broker with strong lender relationships, rather than a single bank.

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Why SEQ Projects Have Their Own Considerations

South East Queensland covers 12 local government areas, each with its own planning scheme, infrastructure charges and approval timelines. A project in Ipswich might move through council differently to one on the Gold Coast, and lenders factor local market conditions, absorption rates and infrastructure supply into their risk assessment.

The scale of growth planned for the region is also shifting what gets funded. With increased focus on housing diversity, higher-density townhouses and units near transport and services are attracting stronger lender appetite than they might have a few years ago. Knowing where your project sits within these regional priorities can help when you're putting a funding case together.

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The Stages of a Development Finance Facility

Most development finance facilities follow a similar shape, even though the details vary by lender and project size:

• Land acquisition. Funding to secure the site, sometimes bridged ahead of a presale or capital raise.
• Construction drawdowns. Funds released in stages as the build hits agreed milestones, rather than as one lump sum.
• Completion and exit. Repayment through sale, lease or refinance once the project is complete.

Getting each stage funded correctly, with the right facility size and the right lender for your project's risk profile, makes a real difference to how smoothly a build runs. Our property development finance breaks down the full range of facilities we arrange for SEQ developers.

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Types of Funding to Consider

Residential development loans. For townhouse, duplex, apartment and land subdivision projects. Lenders will weigh up your presales, equity position and project size, so first-time and experienced developers alike need a facility matched to their specific project.

Commercial construction loans. Structured around your build program, drawdown schedule and end sale or lease strategy. Getting terms that reflect how your project will actually perform, rather than a generic template, matters here.

Mezzanine and bridging finance. Useful if there's an equity gap to bridge, a land purchase to fund before a sale settles, or a time-sensitive site to secure. This type of funding sits alongside senior debt rather than replacing it.

Business loans for property development. Beyond the project itself, working capital, invoice financing and general business cash flow lending can keep operational costs covered so the build doesn't stall. If your business has a more complex financial picture, complex business finance options are worth exploring too.

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What Lenders Look At

Every lender has their own credit criteria, but most development finance assessments come back to the same core questions:

• Does the site have development approval, or a clear pathway to it?
• What's the feasibility study showing for costs, timeline and end value?
• How strong is the presale position, if presales are required?
• What's the experience and track record of the developer and builder?
• What's the exit strategy: sale, lease, or refinance?

New or first-time developers aren't automatically ruled out. Lenders who assess a deal on its fundamentals, rather than purely on developer history, can still offer competitive terms if the site and feasibility stack up.

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Don't Overlook Cash Flow: GST at Settlement

One detail that catches developers out is GST at settlement. Since mid-2018, purchasers buying new residential premises or potential residential land are generally required to withhold GST from the contract price and pay it directly to the ATO, rather than paying the full amount to the developer. The ATO's guide to GST at settlement sets out how the withholding works and what developers need to notify purchasers of before settlement.

If your funding model assumes the full gross sale price will land in your account at settlement, this withholding can create a cash flow gap. It's worth building GST at settlement into your feasibility from the outset, alongside your finance drawdowns, so there are no surprises when a lot settles.

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How Millard Financial Helps SEQ Developers

With over 15 years of experience and relationships across Australia's major banks, boutique commercial lenders and private lenders, we match your project's funding needs to the right facility rather than a one-size-fits-all product. Whether you need a residential development loan, a commercial construction facility, mezzanine finance to bridge an equity gap, or business finance to keep the operational side moving, we run your scenario against our full lender panel to find terms that suit your project's size, presales and equity position.

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Frequently Asked Questions

What is property development finance? It's funding used to acquire land and construct a residential or commercial project, typically drawn down in stages against your build program and repaid on sale, lease or refinance.

Is a development loan the same as a commercial construction loan? They're closely related. "Development loan" often covers the full project finance stack, while "commercial construction loan" specifically refers to funding the physical build of a commercial asset. Both use staged drawdowns against construction milestones.

Can first-time developers get funding for an SEQ project? Yes. With the right site, feasibility and presale position, newer developers can access development finance through lenders who assess the deal on its merits.

Do you arrange finance across all of South East Queensland? Yes, we arrange property development finance across Brisbane, the Gold Coast, Ipswich, Logan, Moreton Bay, the Sunshine Coast and beyond, with strong lender relationships throughout the region.

Ready to talk through funding for your next SEQ project? Get in touch with our team to run your scenario against our lender panel.

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