What are the key financial indicators to analyse when assessing the profitability of a small-scale townhouse development in inner-city Brisbane?

When assessing a small-scale townhouse development in inner-city Brisbane, key financial indicators include Gross Realisation Value (GRV), calculated from projected sales revenue, against total development costs. Crucially, analyse the Return on Capital (ROC) and Return on Equity (ROE) to gauge profitability relative to invested capital. Gross profit margin and net profit margin are vital for understanding cost efficiencies. Furthermore, assess the internal rate of return (IRR) to evaluate project attractiveness given the investment timeframe and associated risks. Cash flow projections, considering construction timelines and sales velocities, are also paramount for liquidity management throughout the development lifecycle.