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Building Costs - Perth

Discussion in 'Development' started by MTR, 16th Aug, 2015.

  1. MTR

    MTR Well-Known Member Premium Member

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    Does anyone know what building costs are per sqm these days? single.
    WM posted a reduction of 6% on one of her projects, I think its time to revisit my Willagee project.

    I am hoping that with the downturn, building costs must be coming down and builders will be fighting for our business.

    Thanks
    MTR:)
     
  2. Oshawott

    Oshawott Well-Known Member

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    may i suggest some parameters are set when we talk about building costs? ( to be able to compare apples to apples)

    notice in my chats to other investors that what is defined as building costs vary (i.e. do you in include headworks/paving/painting etc .... or just actual building no finishings/site costs among others.)

    what is included and not when talking about building costs really does my head in sometimes, pretty some people get confused too.
     
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  3. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    I should qualify that some things were taken out to reduce the price - this was skirtings, 900mm appliances and changing from ducted air con to split systems. The rest was the Builder getting better prices from suppliers now that demand is lower and also lower brick laying prices. As a bonus we were then thrown the skirting and 900mm appliances back in by Builder.

    It probably doesn't translate to a per sqm price but it does suggest that the 5% increase that happened in the last year has been reversed or can be negated.

    As I mentioned before this is one of my reasons why I may choose to build during the slower construction time. BUT it still needs to be balanced. Whether holding on to a development site which is normally quite negative to find the right time/construction price/market situation. When it can take 2 years from site purchase or more if it's a rezoning spot to get to project completion there is a lot of choices to be made.
     
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  4. Aaron Sice

    Aaron Sice Well-Known Member

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    As a general rule, about 5% softening in the Perth construction market is where it's at.

    I'm finding for villas they're down around the $165-185k spec dependent.

    Apartments are still $185-$225k which hasn't changed much since early last year.
     
  5. MTR

    MTR Well-Known Member Premium Member

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    Thanks Aaron
    Do you expect that perhaps building costs will drop further?

    MTR:)
     
  6. Aaron Sice

    Aaron Sice Well-Known Member

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    can't see it Marisa - no.

    costs have gone up a lot just recently and builders are squeezing trades to maintain margin - so if they do fall further, expect a drop in quality to follow.

    eg the reno groups like Summit / Dales etc have always paid a solid $1.25 - $1.50 brick since the GFC and have maintained a consistent trade volume and quality of product; the first home buyer groups have swings and round-abouts between $1.10 and $2.05. You get trades dropping tools at $1.10 and re-entering the workforce at $1.85 and the adjustment period in between is where quality suffers.
     
  7. MTR

    MTR Well-Known Member Premium Member

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    Thanks Aaron.
    I get what you mean about the drop in quality, we certainly don't want this.

    Marisa:)
     
  8. stumpie

    stumpie Well-Known Member

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    @Aaron Sice - could you confirm what this pricing gets you? i.e. a 1 bedder or 2 bedder etc?
     
  9. Aaron Sice

    Aaron Sice Well-Known Member

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    2x1s aren't really that much more than 1x1s - same number of bathrooms, kitchens etc. A 2x2 is always more.

    Generally speaking, pricing given would be for a 2x2 apartment and a 3x2 villa.
     
  10. darrenonsnow

    darrenonsnow Member

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    Thanks Aaron,
    Can you recommend a good estimator/ QS in Perth to get pricing on my 3 x 2 villa plans so we have something before we get pricing back from builders?
     
  11. Aaron Sice

    Aaron Sice Well-Known Member

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    I use Bill Peacock in Nedlands.

    I don't know if it's because he is scary-accurate or his building is super cool and I simply LOVE going there; I suspect it's a bit of both.
     
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  12. stumpie

    stumpie Well-Known Member

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    @Aaron Sice - any idea what he charges?
     
  13. Aaron Sice

    Aaron Sice Well-Known Member

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  14. darrenonsnow

    darrenonsnow Member

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    Thanks Aaron
     
  15. darrenonsnow

    darrenonsnow Member

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    Unfortunately number disconnected and no other details. Maybe you won't be visiting that cool building again soon.
    Any other suggestions?
     
  16. SaberX

    SaberX Well-Known Member

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    Any suggestion Aaron (jumping on the bandwagon) for an affordable, well regarded and detailed building inspector? Preferably one who perhaps does a deal for doing a few stages e.g. frame, roof/carpentry up, lockup, maybe even slab (not sure if a slab stage inspection is needed as one inspector i spoke to on facebook seemed to mention that slab stage wasn't a common inspection stage paid for by clients).
     
  17. Aaron Sice

    Aaron Sice Well-Known Member

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    maybe Bill has retired? Will check.
     
  18. Aaron Sice

    Aaron Sice Well-Known Member

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    I use Lindsay Stone @ ACSWA.
     
  19. Skuttles

    Skuttles Well-Known Member

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    I had a new build requote come back this week at 3% less than original quote 8 months ago. Plans had changed in layout but not sqm footprint or number of kitchens/bathrooms, so somewhat comparable.
    Price softening aligns with what I'm reading here.
     
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