An appraisal by an accredited appraiser is often necessary before a proposed development can receive a commitment for financing from a financial institution. Such pre‐construction appraisals are often more difficult to complete than those where the subject property is already developed and accessible for inspection. In this article we are performing a valuation of a proposed townhouse complex prior to its construction. Hedonic estimation is used to estimate the market value of the proposed development. The estimated value of the complex as a whole, and of the individual units, is compared to the prices obtained as the townhouses were built and sold. Insights with respect to the feasibility of the approach for the estimation of the gross retail value of proposed developments are discussed.