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Construction Costs SQM Rate Townhouse Project

Discussion in 'Development' started by scook32, 30th Aug, 2016.

  1. scook32

    scook32 Member

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    Hi all,


    I'm currently completing my feasibility study and am having trouble determining the construction costs for a set of townhouses is Brisbane. I’ve contacted multiple builders and most of them can’t give me a figure till I give them plans. The thing is though; I have no plans readily available. I’m still in the planning phase and currently conducting the feasibility study to see if it’s even worthwhile continuing with the project.

    Can anyone provide me a current figure (sqm rate preferably) for the construction of a double storey, 3 bedroom townhouse with a double garage at a standard build finish?

    Also, any tips for sourcing these rates, as there are other figures in the feasibility study that I need to source (engineering reports/designs etc.). Tips like how to approach the service provider, structuring the email/content etc.

    I received several figures from multiple sources that have all given varying figures. The range has been from $1000-$2100/sqm. This margin is too large for an effective study.


    Cheers,
     
  2. Brady

    Brady Well-Known Member

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    Asking builders to provide estimated cost without plans... might as well throw at a dart board.
    Do you have an idea of what sort of house will fit - even if it's just some sketch drawings on scale paper.
    How many bathrooms, wet areas, butlers pantry, floor size - does it have structural steel requirements

    Have a look here might help

    Construction Cost Calculator & App | BMT Tax Depreciation
     
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  3. scook32

    scook32 Member

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    Yep, I've tried that website and it was one of the sources for my feasibility study. And yeah kind of a shot in the dark to ask a builder for a quote without plans. What I'm trying to get at though, is how do others source their figures for the construction costs when conducting their feasibility studies? Because employing the services of an architect to draw up plans for your development so that you can take that to a builder for a quote just to see if the project is worth doing is not an effective means.

    Sorry if I'm too forward. This has been doing my head in a while now.
     
  4. theperthurbanist

    theperthurbanist Well-Known Member

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    I'm interested in if others use the BMT cost calculator? It gets referred to a bit but is it really accurate enough for a detailed feaso? Or maybe is it good enough for the 5min initial feaso (when vetting sites) but not the more comprehensive feaso (when determining land price).

    I have found it to be a bit off in the past (for Perth), but then that's not surprising for a general calculator.
     
  5. Brady

    Brady Well-Known Member

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    Compared with my cost to my Highbury SA development - BMT cost were much higher.

    How did you find it for Perth?

    If BMT is higher then actual - sounds like a good approach to use them as a reference
     
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  6. theperthurbanist

    theperthurbanist Well-Known Member

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    On the whole I found BMT over quoted for the dwellings I was looking at, but it was a fairly specific circumstance I was looking into. I was basically exploring a bunch of ABN group's more innovative smaller lot product, and was comparing to the prices provided by ABN. Hard to draw conclusive results as:
    -I was comparing BMT to 'quoted' build costs (which may have blown out), not actual completed builds;
    -The ABN prices we for basic/lockup, whereas BMT is for full turnkey, including allowance for site works, building margins and basic landscaping.

    It is also sometimes hard to line up your proposed dwelling with the categories on BMT.

    Despite this the BMT quotes were coming in 17-45% ($25-130k) cheaper than ABN, which is surely a bigger margin than 'fitout' and basic landscaping would account for.

    Worth noting though that the project home builders I was comparing against (Homebuyer Centre, Celebration Homes) are about as cheap as they get here in Perth, so BMT may be a better gauge for 'standard' builders or non 'off-the shelf' dwellings.
     
  7. theperthurbanist

    theperthurbanist Well-Known Member

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    Example: Homebuyer Centre Santorini – 109sqm 2 x 2 with single garage, single storey. ABN quoted as $135k basic/lockup or $145k turnkey. BMT quoted for $160,000 to $211,000 for a 109 m2 low-spec finish 2br, single level brick veneer townhouse, including allowance for common property and allowance for site works and basic landscaping.

    Example: Homebuyer Centre Picadilly – 191sqm 3 x 2 with double garage, single storey. ABN quoted as $151k basic/lockup similar dwelling by Celebration Homes (slightly higher spec than HBC) quoted at $170k). BMT quoted $212,000 to $281,000 for a for 191 m2 low-spec finish 3br, full brick project home and allowance for site works and basic landscaping.

    Just an example, as I mentioned there are many differences between the two.
     
  8. theperthurbanist

    theperthurbanist Well-Known Member

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    As mentioned the BMT calc doesn't cover all dwelling types, and has some strange omissions. For example it has a '3br full brick project home, level block, single level, shelf design' but not a 4br version. If you go for the 4br 'unique design' (which notably is not an 'architecturally designed executive residence' category) at the same sqm the price jumps up $150k !!!
     
  9. scook32

    scook32 Member

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    These large variations in prices can make or break a project (feasible or not feasible), especially when the project involves the construction of multiple structures. I just want to know how others were able to source their figures to allow for their initial feasibility/financial study.
     
  10. GreatPig

    GreatPig Well-Known Member

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    With that BMT cost table, for 4bdm full brick unique design, why would single level be significantly more expensive than two level? Every other type of house has two level more expensive than single level.
     
  11. theperthurbanist

    theperthurbanist Well-Known Member

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    Agreed! I can only imagine it is an error? In my experience (in WA) second storey double brick construction is around 50% more expensive than single storey construction. Ahh the ridiculousness of brick n slab construction!

    Sorry if we are getting off topic @scook32 , hopefully this is at least answering part of your question though (ie whether BMT is a valid tool for feasibilities and what to watch out for).
     
  12. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Sometimes it's easy to work out construction and other times it's really difficult because the term 'standard build finish' can wildly vary.
    If you look at similar builds in the area that you think are appropriate for the market you can go to council and ask (or trawl their website) and find out who the builder was and then ring that builder and ask.
    However I would expect around $1500-1750psqm for a framed house in your area
     
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  13. Keentolearn77

    Keentolearn77 Active Member

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    Gday Scook32, I feel your pain.

    I've primarily joined propertychat recently to try and fill in a few gaps regarding coming up with an accurate feaso calculator.
    There are the guru's that promote the feaso calculators/number crunchers etc, - Michael Yardney, Rookie Developer etc, but that comes at some cost. Surely someone out there can impart some wisdom with feaso calculators they use for their own projects.....?
     
  14. RetireRich101

    RetireRich101 Well-Known Member

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    Simple.

    Go to Planning Alert.
    Enter few street address in the suburbs you want to build in for any current and past 1 year development.
    View the plans submitted to council
    Drive by those townhouses. If under construction or inspection available would be even better
    If you like them, the plans and submission to council will have the architect, planner and builder details.
    Call that builder, say you have a block exactly same as xxx. Same contour, size sewerage location. Ask how much to build the exact townhouse. Do the same for the architect and planner..
     
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  15. Keentolearn77

    Keentolearn77 Active Member

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    Your a GEM, didnt know this website existed,
    Cheers
     
  16. theperthurbanist

    theperthurbanist Well-Known Member

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  17. Tim86

    Tim86 Well-Known Member

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    For me to build new is $444 per sqm and for me to get a removal house and renovate is $363 per sqm.

    Maybe u should diy :D
     
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  18. MTR

    MTR Well-Known Member Premium Member

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    I agree, that is absolutely crazy range, $2100 per sqm is completely off the planet.
    I would look at what project builders are building per sqm, similar product, double storey and also work out your specification ie stone benchtops, high ceilings etc.
     
  19. MTR

    MTR Well-Known Member Premium Member

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    Are you available for my Melb project? LOL
     
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  20. Tim86

    Tim86 Well-Known Member

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    Haha as much fun as it sounds to do even more construction work I may have to pass.