The Number Your Model Starts From
Every development model starts with a number — units, bedrooms, lettable square metres — and most of those numbers are assumed. They come from site area multiplied by a density someone thought reasonable, not from what the zoning, the Spatial Development Framework and the services at the boundary will actually allow. A planning feasibility replaces the assumption with a tested figure. It is the input a quantity surveyor’s or valuer’s work should begin from, not a substitute for it — and it answers what their models cannot: what may be built, what it would take to build more, and how long that would take.
Two Numbers Not One
What the land supports as of right today, and what it could support with applications. The gap between them is where the value sits — and where the risk and the time are.
When You Need a Feasibility
The earlier it is done, the more it is worth. In our experience these are the four points at which people instruct one.
Before you make an offer
The cheapest moment to test a site is before a price is agreed. Once an offer is signed, the due diligence clause sets the clock and the options narrow.
You already own the land
A family property, an estate, or a holding bought years ago. What it could support now may be very different from what it was bought for.
You are choosing between sites
Two or three candidates, one budget. Tested side by side against the same criteria, the cheapest-looking site is not always the one that yields most.
A funder needs it
A bank or investor wants independent confirmation that the scheme is achievable before committing. The report is written to be relied on by a third party.
Before instructing anyone, ask the municipality for a zoning certificate on the property. It costs little and names the zoning the land carries now — which tells you at once whether your model starts from what is permitted, or from something that would have to be applied for.
What a Feasibility Answers
A yield without a programme, or a programme without the charges, is not a feasibility. It is only as useful as its answers to all five.
What can be built today?
The yield the current zoning permits without any application — coverage, height, floor area and parking applied to this erf. The floor under every other scenario.
What could be built with more?
The yield a rezoning or departure could realistically secure, weighed against policy and the likelihood of objection. Not the maximum imaginable — the maximum defensible.
How long until the rights exist?
Every application adds months. A scheme needing a rezoning, a removal and an SDP is well over a year from transfer to building plans, and that belongs in the model.
What will the municipality levy?
Development charges imposed as a condition of approval, calculated on the demand the scheme adds. On a dense scheme, frequently the largest line a model misses.
Will the services carry it?
Water, sewer and electricity at the boundary, confirmed with the service authority rather than assumed. Where capacity is short, the upgrade usually falls to the developer.
What the Report Contains
Written to be used, not filed. Six sections, each producing a figure or a finding that someone else will build on.
The rights baseline
The zoning, the title conditions and any existing approvals, established from source documents. What the land permits before anything is applied for.
Scenario yields
Units, bedrooms or lettable area under each scenario — as of right, with departures, with a rezoning — calculated against the parameters each would carry.
Policy alignment
How the scheme sits against the Spatial Development Framework, any precinct plan and the SPLUMA development principles — and what that means for approval.
Services capacity
Water, sewer and electricity at the boundary, confirmed with the service authority. Where capacity is short, what the upgrade involves and who pays for it.
Development charges
An estimate of the contributions each scenario would attract, so the model carries them from the start rather than meeting them at approval.
Programme and risk
The applications each scenario requires, how long each takes, and a plain view of which are likely to be opposed. Time to rights, stated as a range.
The report is written to sit alongside a quantity surveyor’s cost plan and a valuer’s residual, not in place of them. It gives them the yield, the charges and the time — three inputs they cannot produce themselves — in a form they can put straight into a model.
From Rights to Recommendation
Five phases. The second is where judgement matters most — deciding which scenarios are worth testing, rather than modelling every one that is theoretically possible.
Rights baseline
Zoning, title and existing approvals established from source, so every scenario is measured from the same starting point.
Scenario definition
Not every theoretical option — the ones the policy, the site and the market would plausibly support.
Yield modelling
Each scenario calculated against the parameters it would carry, with the parking and open space each requires.
Constraints overlay
Services, charges and policy applied to each. Some scenarios fall away here, which is the point of the exercise.
Recommendation
Which scenario to pursue, what it requires, how long it takes, and what it is likely to cost in charges and risk.
Durations are for unopposed applications with a complete submission. In the report, every scenario carries its own range for your site, with the opposed case stated alongside and the charges each would attract.
What a Feasibility Costs
Modest against the land it tests. The fee turns on how much has to be established and how many options are worth testing. Four things move the figure.
The site's complexity
One erf with clean title is a short exercise. Several portions carrying servitudes, conditions and a history of approvals is not.
How many scenarios
Each scenario tested means yield, constraints and programme calculated again. Comparing sites multiplies that by the number of sites.
Specialist input
Traffic, geotechnical, heritage or environmental input where the site calls for it. Each is a separate appointment and is not always needed at this stage.
Whether services are confirmed
A desktop view of capacity, or written confirmation from the authority. The second takes longer, costs more, and is what a funder will ask for.
Set it against what you are about to pay for the land. A feasibility that moves the yield by a handful of units has moved the land’s value by many times its own fee — and that difference is only recoverable before an offer is signed.
Related Services
A feasibility ends with a recommendation, and the recommendation is usually one of these. The first often runs alongside it.
Due Diligence Investigations
What the land legally is as distinct from what it could become. Often run alongside a feasibility within the same due diligence period.
Due Diligence Investigations >Rezoning
The route a feasibility most often recommends, where the yield the model needs sits beyond what the current zoning allows.
Rezoning >Township Establishment
Where the site is large enough that the answer is not one scheme but a township — new erven, new streets and new zonings.
Township Establishment >Sectional Title Development
How the finished scheme is held and sold. Worth considering at feasibility stage, because the parking and common property it needs affect the yield.
Sectional Title Development >Feasibility Questions
What developers, landowners and investors ask us before instructing one.
Question not answered here?
Send us the erf number and what you have in mind for it.
It depends on four things, and site area is only the starting point. The zoning sets density, coverage, height and floor area; the parking and open space those units need take land away from what can be built on; the title deed may impose limits the scheme does not; and the services at the boundary have to carry it. The as-of-right answer can usually be given quickly. What the property could carry with a rezoning is the more useful question.
A financial feasibility asks whether a scheme makes money — construction cost against revenue, with a residual land value falling out of the difference. A planning feasibility asks whether the scheme can be built at all, and how large it can be. The financial model needs the planning answer before it means anything: a residual calculated on forty units is worthless if the site will only carry twenty-eight. The two are complementary, and ours is written to feed straight into one.
Not as a valuation — that is a registered valuer's work, and it should be. What we produce is the input the valuation turns on: how much the land can lawfully carry, under which scenarios, and with what costs and delays attached. A valuer with that in hand values the land on its real potential rather than an assumption, which is usually the difference between a sound price and an optimistic one.
No, though they are often run together. A due diligence establishes what the land legally is — the rights it carries, the conditions registered against it, the servitudes and restrictions that survive transfer. A feasibility takes that position and asks what the land could become. The first is about the present and the second about the future. On a purchase, both usually matter.
Yes, where it is instructed on that basis. A report prepared for a funder states its assumptions, sources and limits so a credit committee can follow the reasoning, and it is addressed accordingly. Where you know at the outset that a bank or investor will rely on it, tell us — the scope and form of the report are set with that in mind.
Weeks rather than months. A single site with clean title, tested against two or three scenarios on a desktop view of services, is quick. Written confirmation of services capacity from the authority adds whatever time the authority takes to respond, and that is the variable. Where an offer carries a short due diligence period, tell us the date and we scope the work to fit it.
Then the report has done its most valuable work. A feasibility that tells you a site will not carry the scheme you planned — before you have paid for it — has saved you the land price, the holding costs and the fees you would otherwise have spent finding out. It will usually also tell you what the site could carry instead, which is sometimes a better scheme than the one you started with.
Speak to a Planner
Send us the erf number and what you have in mind for it, ideally before an offer is signed. We will tell you what the land carries now, whether your scheme is within reach, and what a full feasibility would need to establish. Initial consultations carry no obligation.
35 Fricker Road, Illovo, Sandton · Development feasibility across the Gauteng City-Region