Building apartment cost for development feasibility

Am looking at doing a feasibility spreadsheet for developing a block with apartment buildings but need information on how costing is calculated ie if per sq.m. as in townhouses or there are other factors to include.

 

I'm assuming you are talking just construction costs? If so, you can do it any way you want, it really just depends on what cost data you have that enables you to be confident on your numbers to purchase the land and/or proceed with the development. For example if you've just completed a development down the road that is similar, or know someone who has that you can get the data from, you are probably going to have some accurate information to simply apply a m2 rate.

If you already have a permit/DA or at least a conforming scheme, you're better off getting a builder to work with you or a QS to provide an estimate. Or if you have the cost data, do some elemental costings to break out your saleable area, common area, balconies, services, entry lobby, basement, and apply the appropriate rates to each. That'll give you a more accurate picture of the construction costs. I'm from Melbourne, so the data I have won't be applicable to you in Sydney.

Also, I assumed you are referring to construction costs only, but if you are referring to the the whole development, you need to determine your other development costs too.

 

Thanks jsey10.

I am looking at a block of land with usable land area of approx 1hectare (net developable area, conservative estimation for feaso purposes). I am trying to see the potential of how many apartment blocks and number of apartments in a 21m high structure that can be constructed. If I can find even an apartment block’s costing, if expressed in per sq.m. cost or in another way, it will be easier to perhaps work it with the given area and get other cost estimates ie DA/council costs and fees, etc.

 

Hi Bahayan, it seems like you need two things at the moment - one needs to come before the other.

If you are looking to see the potential of how many apartments/apartment buildings can go on the 1HA, you need to work that out before you bother starting any costings. You should be engaging an architect or an urban design/town planning firm to provide you with a scheme. Initial feasibility schemes are usually done very quickly and at low cost (or no cost if you have a relationship and/or you engage them if you proceed with the development).

Once you have that, you'll then be able to chase down the bulk of your development costs.

Hope that helps.

 

Agree with jsey - work through the concept design/yield first, THEN look at costing

 

When you're doing a feaso on a large site, you can afford the engage a few consultants for TP, concepts & a QS for budgeting. Even at the highest level.

Knowing what you can build, council contributions, essential worker accommodation/low cost housing additional fsr, holding costs etc all contribute to the feaso way before budget can be commenced.

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