Hi guy and gals… This is my first post, been snooping around the forum for a little while, just thought I might post up a question regarding a development I am looking at completing.
I have purchased a house on 2 corner lots on the south side of Brisbane, and would like to do some figures on building 6 units on it. The land size is 874 sq.m and it is not yet zoned LMR as it is in one of the Draft neighbourhood planning areas. Nonetheless this is supposed to be approved mid to end of next year, so I could have all the plans etc drawn once the zoning takes effect.
My main question of course is building costs. My original intention was to realign the central boundary between the 2 lots making 2 square lots, rather than the standard long narrow ones, which also allows me to retain the existing house on one of the lots without moving it. Then build or move in another house and rent them both out… However that is probably not using the land to its highest and best use, given the availability to put townhouses on…
So if anyone has done a six pack in Brisbane recently of low to moderate quality, on a corner allotment, can you please give me an indication of costs per square meter etc of the end product. Also what is the standard type townhouse in size ?
thanks in advance,
Adam
Hi Adam
Did you have any response to your posting above? I would also like to learn about costings for a similar development in Northern Brisbane.
Rushie
Last one we finished was in February and although my partner is a Builder which certainly helps if you work on say $1500 / square metre then you should be ok.
This does not include of course DA / BA costs or Council contributions and cover merely the building costs, inclusions and finishes.
Standard townhouse size is a difficuly one but normally around 80-85 Sq m for a 2 bedroom upwards and probably min 92 Sq M for a 3 bedroom.
Richard Taylor | Australia's leading private lender
Hi Developers,
I'm very interested in this thread since I'm thrashing the numbers on developing a 5 unit development on a 607SQM block in Wavell Heights, Brisbane North.
Since this is my first venture into a development, I'm finding myself allocating large numbers for contingencies to make up for my lack of knowledge, and that is making my project infeasible. – So I need to better estimate numbers to get a more accurate picture.
Graham and Judy, we seem to be seeking very similar information here. The information I've got so far is:
Building cost for a 3 level unit development is somewhere between a basic at $1108/SQM ( http://www.washingtonbrown.com.au/building-cost-calculator/) and a medium high end of $1897/SQM (http://www.bmtqs.com.au/construction_cost_calculator.htm).
What I don't know is if that budget will include:
Earthworks
Sewer and Electrical connections
Landscaping
Fencing
Sound barriers
Footpath repair
Tree removal
Project management fees
Inclusions such as fridge, dishwasher, dryer, air conditioningBasically I need a budget estimate to be sufficient for a buyer to walk in and fall in love with the finished product and buy it for the same price that others are being sold at in the immediate area.
If the building per SQM price does not cover all of the above, then what does the estimate cover so I can calculate how much extra I should allocate to be able to get a unit "sale ready"?
A development application to the Brisbane City Council costs $6600 for 2-9 units.
The Brisbane City Council charges around $100 000 as an inftrastructure contribution for 5 units, discounted by 35% if paid by June 30 the year after approval.Cheers,
Paul Moore – [email protected] – 0411 887 926
Although not so much on the actual costs (Richard's ballpark estimate is a good amount to budget). I have managed the marketing / sales of developments for a few years now, so here's some information that may save you some dollars.
Your costs will depend on many things the level of finish is a big part of this. Build what the market is demanding – you don't need to build something that is amazing, but no one is willing to pay for. Look at different developers and see how they position their product (Villaworld – building the standard house at a very affordable price or someone like Brad McGlochlan homes who have a very nice product and you'll pay for it). Also, you don't have to build the biggest townhouse ever, if you can shave a couple of m2 off the townhouse size you can save a few grand a townhouse.
Develop your product for where you are building and you can over paying for the fit-out and check out your competition (re.com.au and/or local agents – these guys have loads of info on all the little projects going on in their area).
Your site works can have a dramatic impact of costs too – how sloppy is the block? (more slope = more costs). the configuration of the block may make it hard to perform work. The class of soil (usually "M" meaning moderately reactive soil – most builders quote on this. If you end up with an "H" – highly reactive – you'll be up for more costs.
Remember to factor your marketing costs and who your going to target (design product appropriately) in and don't don't leave the selling / marketing as an afterthought!
Hope that helps a bit.
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