Hi everyone,
Now obviously I am a relative newcomer to property development so I probably have a very silly question.
I am currently looking at a tract of land on a very nice south coast beach which has a DA for 3 town houses. Now I havent even got into the nitty gritty of the deal yet and am still running plusses and minuses around in my head.
Now heres the silly question. If at all possible, what is the roundabout price range for building 3 town houses. Now I know thats a subjective question but i’m just looking for a very subjective range out of interest.
The block is completely flat and empty and is ready to be built on straight away. Oh and they would be low set too, so no high rise lol
Obviously price will range depending on the actual design etc etc but I guess i’m just looking for other peoples experiences re price etc.
best regards
steveWOW !!
This is really a “how long is a piece of string” question.
Your best bet would be to enquire with some local builders for a price range.HINT…also, its better to run the plusses and minuses on paper or a spreadsheet and not in your head.
Also, keep in mind that you make your profit going in (when you purchase) not at the other end. Make sure all the profit is not capitalised into the asking price since there is a DA in place…KP
Your question is open to a variety of cost estimates/feedback which could be more confusing [inaccurate] than beneficial.
My recommendation is to work out approximately how large the townhouses will be [square meters – finished area], how many bedrooms, bathrooms and other features, i.e. garage, they will offer [subject to zoning and planning approval] and the standard of materials and fittings.
Then contact a local [reputable] builder to discuss and get a general estimate. The builder may give an indicative price per square meter at no cost – or a more detailed cost of construction for a relatively small fee.
— Michael
Michael is right. You need to give some definition to what you’re thinking about before anyone will be able to think about an estimate.
There is a QS in Nowra who might be worth talking to – John Eastment.
What about taking a photograph of the sort of thing you’d imagine building – go for a drive round the area where the land is and you’ll see something – and running it past a local QS/Estimator/builder?
Or send it to me and I’ll ask one of my guys what they think.
You could also go down the project home route. At least their designs are costed and available on-line to look at.
I am interested in the answer to this too. If you do find this out Grifithvoice, could you please post the results.
Otherwise, has anyone else developed townhouses? If so, how big were they, and what did they cost per unit?
Dan.
Looking for positively geared property? Check out http://www.positivelygeared.com.au
“I am interested in the answer to this too.”
Two townhouse [apartment, high-rise, etc] projects can be developed within 100 meters of each other and vary in cost substantially.
There is no magic number.
There is more to the cost of any development than bricks and mortar.
As noted above, contact a local builder or QS [quantity surveyor] to discuss the concept/scope of work and get an idea of indicative costs.
— Michael
90-120k complete for 15-19 Square townhouse.. There’s a range for you..
WOW
That’s great prices, who’s the builder? do they do any work in Sydney? We just got DA for 3 villa, you think they would be interested in building them for that price in Sydney.
Our current quoting rate for our clients for Sydney mid to hige rise apartments is $1500 to $2000 per square metre.. as usual, depends on level of finishes. Townhouses could be cheaper…
Joseph
“Our current quoting rate for our clients for Sydney mid to hige rise apartments is $1500 to $2000 per square metre.. as usual, depends on level of finishes.”
In terms of mid to high-rise developments, the construction cost varies subject to the number of floors/levels. The higher the building, the more costly it gets.
[$2,000 square is on the very low end for a high-rise in Sydney, if sustainable at all.]
Back to the original question, what is being overlooked in these responses is the square meter rate [typically the “construction cost”] is only one component of the cost involved in any development.
Furthermore, it is generally a lower risk component [if the project is cleary feasible] because it is leveraged via a lender, i.e. bank.
The highest risk phase, which is where the developer/development company invests its own capital, is the preliminary phase. This includes securing land, planning/survey, design, feasibility studies, professional fees, etc.
Marketing costs may also be an important factor in the equation.
Asking others for an estimate on the cost of this phase is the same as requesting estimated construction costs without disclosing the details of the project – there is no magic number.
— Michael
Prices I quoted I have gotten in VIC and WA, not just one builder, shop around and its not too hard to find them.. Dunno about NSW, never nuilt there.
Slum Lord
That is cheap – I recently was quoted $300K for a corner duplex 2×3, single level, finished right down to landscaping and window coverings.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Prices vary wildly between states – Tas for instance is around the 200k mark for a detached unit/townhouse with average quality/inclusions – not too bad until you compare with purchasing existing property in the same area.
Do not forget costs for supply of water, power and sewerage as these can add considerable to your building costs. Speak to several Agents to determine what is the wish list for purchasers in that area and design your units accordingly eg. 1, 2 or 3 bedrooms, large living room or smaller living room and larger outdoor patio.
If I knew then what I know now……….you know how it goes
my rule of thumb for WA is (assuming flat blocks here)…
villa approx 100sqm $100 to $110k
townhouse approx 115sqm $160 to $180k
plus $10 to $20k site costs and incidentals. then add interest etc
So you can see how much peoples numbers vary! At the end of the day you dont get nothing for nothing. If someone can build you a townhouse for $50k, will it be something that you can sell?
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
Get a recognised local builder to have a look at it. Pick his brains and you should come up with a rough estimate. If you need a JV partner I may be able to assist you.
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