Development approval (DA)

A development approval, or DA, is the local council or planning authority's consent for a proposed development to proceed, covering matters such as land use, density, height and design before construction can be approved to begin. Land carrying an approved DA is generally worth more, and finances more readily, than an equivalent site where a DA is still pending, since an approved DA meaningfully reduces the uncertainty around whether and in what form a project can actually be built. Land bank loans are commonly used to hold a site through the DA process, with the loan structured around the expected timeframe to approval and often at a more conservative loan-to-value ratio than would apply once the DA is secured. Lenders assessing a site with a DA pending will typically look at the planning history, any objections or conditions likely to be imposed, and the track record of the planning consultant managing the application, given how directly the outcome affects the project's viability.

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Land bank loans · Subdivision · BA