Hi,
I (along with a few partners) am looking into the possibility of developing a 3 storey set of apartments in Dandenong, and was looking for some idea of the costs involved along with any general advice people might have.
I've been quoted about $20K from an architect, which would involve them handling everything (permits, plans, planning reports, etc.) I've been told that, with apartments, building costs depend very much on the design, but can range anywhere from $1500 to $3000 per sq m (and higher, of course) for different parts of the building, and overall averaging about $2000 per sq m or so from those I've talked to. I've only started looking around, so not sure if those sound reasonable.
If anyone has any advice they can offer, similar experiences, things to look out for, etc., whether general or specific, it'd be very welcome
Hi Sm,
I recently had builders tender for a two-level apartment building for about $1900/m2 with low-medium level finish, and a bit of "polish" to the entry lobby. It had a basement carpark which came back at about $700/m2. So you're not too far off the mark.
Then again, use averages just as a ball-park guide as averages can be misleading due to too many parameters e.g. site constraints, access, size of development, etc.My experience with developer-type clients have revealed that one would usually work from both "ends" to achieve the required yield and economic feasibility – the cost-driven approach (As above), as well as the market-driven approach to determine the typology and mix of apartments appropriate for the area. The two approaches usually meet somewhere in between which determines your yield outcomes. Seek opinions from real-estate experts and do your own research.
Using an architect will add value to your project (I'm slightly biased here!
), and fees vary (loosely a percentage of construction costs to fixed fees) depending on scope of services – full services – from sketch design, town-planning to documentation and administration.Well sm, you're not the only one! I was driving through Dandenong recently and (after taking a wrong turn) was astonished to see the level of apartment development going on. Dandenong, as you are probably aware, is a designated higher density zone (along with several other activity centres) and the area is also enjoying massive spending on community infrastructure. So I guess it could stack up as an opportunity.
Arena has given some great feedback on pricing, and on pricing methodologies.
Design is critical in apartment building. Early recognition of load points, service areas, access and egress, and of the appeal to the target demographic should all help to create a successful project.
Two other minor points I might make:
- The number of storeys (or levels) a building contains dictates the statutory planning and building codes applicable to that building.
- Many apartment buildings are constructed using tilt slab concrete construction. Tilt slab construction is union labour. I don't have an opinion on union labour, but it can affect who is engaged in the construction and how.
Good luck with the project.
Hi SM,
We just engaged an architect to start work for us on a 36 apartment 3 storey building not too far from Dandenong. We have been quoted 28K + GST for the whole planning and permit process including colourful 3D drawings. We are 2 partners with each of us owning an adjoining site.
Do you already own the site or are you planning on acquiring a site with potential to put apartments on it. I live in Rowville and its amazing to see the number of apartment buildings going up in Dandenong.
Keep in touch and hopefully we can exchange notes.
We've been quoted $3-4k per apartment for a 30+ unit apartments. What is the standard that designers use to quote on a figure? Per apartment or per sqm building?
An architect will commonly charge a fee based on the project costs (5% – 10%) but it is not unusual for an architect or building designer to agree to a fee based on the project and the work involved rather than the size or cost. There is a big difference in the work involved in preparing a town planning application and completing the working drawings.
), and fees vary (loosely a percentage of construction costs to fixed fees) depending on scope of services – full services – from sketch design, town-planning to documentation and administration.
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