Written by David Lovato – CPC Development Lending Solutions

June 2026

Many developers started projects in 2025 expecting sales to catch up during construction. Instead, some are approaching completion with fewer presales than anticipated and a construction loan that still needs to be repaid. 

If this sounds familiar, a residual stock loan could be an option for you. 

Why have presales slowed?

The off-the-plan market is under pressure from several directions at once. The Reserve Bank of Australia (RBA) has raised the cash rate three times in 2026, taking it to 4.35%, undoing all three of the cuts delivered in 2025. Reduced borrowing capacity means fewer buyers can qualify for finance at the prices developers need to achieve, shrinking the pool of potential purchasers considerably.  

Buyer sentiment has been affected by uncertainty around interest rates, the cost of living and the Federal Budget’s negative gearing and capital gains tax (CGT) changes. While the reforms aren’t yet official – and even if they do become so, they won’t take effect until 1 July 2027 – some prospective investors are taking a cautious approach while they assess the implications for their own position. According to the latest Westpac-Melbourne Institute Consumer Sentiment Index, the “time to buy a dwelling” index dropped 13% in June 2026 compared to the same time in 2025. 

Longer build timeframes add another layer of hesitancy. A new report from the Committee for Economic Development of Australia (CEDA), produced in partnership with Urbis, found that build times have increased by 40% since the pandemic, and construction costs have surged by 88% over the last 10 years. As a result, buyers who commit to off-the-plan are locking in a purchase price for a property they may not settle for a year or more, in a market where the outlook has become harder to read. 

There is also a dynamic specific to developers themselves. Many could generate more sales by discounting, but doing so risks resetting the price benchmark for the entire project. Some are consciously choosing to protect value rather than chase volume – a sound strategy, but one that slows sales in the short term. The result for projects completing right now is fewer locked-in sales than anticipated and, in some cases, presale numbers that fall short of what is needed to repay the construction lender. 

What is a residual stock loan? 

A residual stock loan is designed specifically for this situation. It allows a developer to refinance out of their construction loan at or near practical completion, replacing it with a new facility secured against the unsold dwellings. 

Rather than being forced to discount to generate quick sales and meet a construction loan maturity date, the developer transitions to a lender whose facility is structured around a sell-down period. This gives your sales team time to properly nurture qualified buyers through the decision-making process, hold prices at the levels the project’s feasibility requires and avoid the pressure to discount that comes when a construction loan maturity is bearing down.  

The key benefits of a residual stock loan 

The most immediate benefit is time. A residual stock facility extends your timeline, removing the pressure of a looming construction loan maturity while your sales campaign is still gaining traction. 

It can also reduce holding costs. Residual stock facilities are typically structured differently from construction loans, and refinancing at the right time can lower the cost of carrying unsold stock through to settlement. 

There is also the potential for early equity release. Some residual stock lenders will agree to a split of sale proceeds as individual settlements occur, meaning you can begin recovering equity from completed sales rather than waiting until the entire facility is repaid. For developers with capital committed across multiple projects, this can help with cash flow. 

What to consider before choosing a residual stock loan

Residual stock facilities are not without trade-offs. Interest rates are typically lower than a construction loan as there is no line fee or progressive drawdown, so there is less ongoing admin for the lenders. The loan will have a fixed repayment date but no minimum term, so you don’t get penalised if you repay the loan early.

Lenders will also assess the quality and location of the unsold stock, the strength of the sales pipeline and, often, the experience of the appointed sales agent before agreeing to terms. A project with limited buyer interest or in a softening market may find residual stock options harder to access, or available only on less favourable terms. 

It is also worth noting that a residual stock loan is a bridge, not a solution in itself. If the underlying demand for the project is genuinely weak, extending the sell-down period will delay rather than resolve the problem. The facility works well when the issue is timing and market conditions, not fundamental project viability. 

Timing matters

Many developers wait until practical completion to investigate residual stock finance, but by then, your options could be more limited. As soon as it becomes clear that sales are tracking below expectations, you should consider engaging a specialised development finance broker about your options. 

Starting the conversation early gives you more flexibility, more lender options and more time to structure an orderly transition out of the construction facility if required. 

At CPC Lending Solutions, we help developers assess residual stock options before settlement pressure builds, giving you more time to achieve the right sales outcomes rather than being forced into decisions by looming loan deadlines. To find out more about how CPC approaches development finance, download the CPC Lending Solutions Development Lending Guide. 

If you would like to discuss your specific situation, contact David Lovato at dlovato@crowdpropertycapital.com.au or submit an enquiry.

Written by David Lovato – CPC Lending Solutions

September 2025

In property development, finding a lender who truly understands your perspective can transform the entire project experience. While many lenders focus purely on numbers and rigid criteria, others take a more empathetic approach that puts the developer’s needs at the centre of every decision.

In the latest instalment of our “Lender in focus” series, we’re profiling Goodland Capital, a boutique lender with a clear niche in small-scale property developments.

What sets Goodland Capital apart?

Goodland Capital’s key differentiator is its empathetic, developer-first approach. Unlike larger institutions that typically apply one-size-fits-all solutions, Goodland Capital takes the time to understand not just what you’re building, but why you’re building it – and what obstacles you might face along the way.

This problem-solving mindset means they’re not just a lender, but a partner who understands the realities of development projects.

A focus on smaller developments

Goodland Capital specialises in smaller-scale projects, including land subdivisions, duplex constructions and single-house builds, with particular expertise in projects that are midway through construction. They do not finance large apartment complexes or major development projects, but their targeted focus means they have deep expertise in this space.

By concentrating on smaller developments, they’ve built an in-depth understanding of exactly what these projects need to succeed. This means you benefit from a lender who truly understands the requirements and risks of smaller, high-potential projects.

Unique policies that matter to developers

Goodland Capital offers several features designed specifically for property developers. 

First, their early involvement in due diligence is especially valuable. This allows them to participate in preliminary assessment phases and use their broad market knowledge to identify potential issues before they become costly problems.

Second, they provide a high degree of funding certainty. Once Goodland Capital commits to a project, you can count on them to deliver. This matters most for developers and provides peace of mind throughout the development process.

Finally, Goodland Capital prioritises a personalised problem-solving approach. This means that rather than just providing capital, they also work closely with developers to find practical solutions to challenges as they arise.

Why developers choose Goodland Capital

There are several reasons why property developers value working with Goodland Capital:

1. Genuine partnership approach: The team thinks like developers, offering practical guidance and support rather than creating obstacles.
2. Funding certainty: Reliable and consistent finance allows developers to plan and proceed with confidence.
3. Specialised focus: Concentrating on smaller developments means they have in-depth knowledge and expertise in this sector.
4. Responsive and personal service: As a boutique lender, developers have direct access to decision-makers. This means you get quick, personalised responses to queries.

The right fit for the right developer

Goodland Capital is an ideal partner for developers who value more than just access to funds. Their empathy-driven approach, deep understanding of smaller-scale projects and reliable funding make them a standout in the development finance market.

Of course, every developer’s needs are different, and what works perfectly for one project may not suit another. That’s where CPC Development Lending Solutions comes in. We work with a broad range of lenders to match each client with the right financing solution for their specific project. Whether you’re just starting a new subdivision or looking to finish a partially completed build, we are here to help you find the right financial partner.

Contact us at info@crowdpropertycapital.com.au or fill in this form to find out more. 

Written by David Lovato – CPC Development Lending Solutions

July 2023

Greater Sydney is in the midst of a housing supply crisis, with the city facing a projected shortfall of 134,000 dwellings over the next five years. 

To tackle this, the NSW government is reforming the planning system so that it incentivises developers to build affordable, high-density housing.

Under the changes, housing developments valued at more than $75m, which include a minimum of 15% affordable housing, will gain access to a new State Significant Development pathway, meaning planning decisions will be made faster.

Developers will also be able to build 30% higher and add 30% to the floor space to land size ratio than local environment plans allow, as this fast-tracked planning pathway pulls the approval process out of the local council’s control.

But what about smaller projects? 

After all, getting local council planning approval for a development project can be a complicated, expensive and time-consuming process, regardless of its size, as:

• Every council has different local planning rules and regulations
• Every council interprets statewide planning laws in its own way

Fortunately, the Low Rise Housing Diversity Code (formerly known as the Low-Rise Medium Density Housing Code) can be used to ‘sidestep’ the local development pathway.

Here is how it works. 

A fast-track approval pathway

The Low Rise Housing Diversity Code was introduced by the state government to promote the construction of diverse and affordable housing options in low-rise residential areas.

It does this by creating a fast-track approval pathway for the following property types:

• Dual occupancies
• Terraces
• Manor houses

This means that as long as the proposal complies with the State Environmental Planning Policy (Exempt and Complying Development Codes) 2008, you can receive approval in as little as 20 days, giving you planning timeframe and outcome certainty. 

What do you need to know about the code?

The code applies to eligible residential lots located in areas zoned:

• R1 (general residential)
• R2 (low-density Residential)
• R3 (medium-density residential)
• RU5 (village)

These areas generally consist of established neighbourhoods and urban environments where low-rise housing can be integrated seamlessly. 

Some exclusions do apply though, including:

• State or locally-listed heritage items and heritage conservation areas
• Land reserved for public purposes 
• Environmentally sensitive areas.

Housing types under the Code

As mentioned, the Code allows for the fast-tracking of dual occupancies, terraces, and manor houses. 

Dual occupancies refer to two separate dwellings located on the same lot, that can be attached or detached. 

Terraces allow for up to three dwellings on a single lot. These dwellings must front a public road, with no other dwellings located above or below.

A manor house is a building containing between three and four dwellings that is up to two storeys in height (excluding any basement). Each dwelling is attached by a common wall or floor with at least one dwelling fully or partially located above another dwelling.

Lot sizes and development standards

To comply with the code, proposed developments need to meet the minimum lot size requirements:

• Dual occupancy – the size of the lot being developed must meet the minimum lot size required to build a dual occupancy under the relevant council’s local environmental plan (LEP). If the LEP does not specify a minimum lot size, the Code applies a minimum 400m2 lot size.
• Manor houses – a minimum 600m2 lot size requirement applies.
• Terraces – the size of the lot being developed must meet the minimum lot size required to build multi-dwelling housing under the relevant council’s LEP. If the LEP does not specify a minimum lot size, the Code applies a minimum 600m2 lot size.

There are also specific criteria related to building design, setbacks, landscaping, privacy, and parking.

CPC Development Lending Solutions can help you get your next project funded. To confidentially discuss your options, contact David Lovato on +61 434 932 634 or info@crowdpropertycapital.com.au.