High End Single Dwelling Development - Profitable?

I have recently come across a group offering a design & build option that sits somewhere between a project home and a fully-bespoke build:

RUUM

They offer 5 different designs, of which they will complete a maximum of 10 builds of each design in each state. They have advised the build cost sits somewhere around $4,000m2 (dependent on labour costs in each region), with the equivalent specs on a bespoke build costing closer to $6,000m2. You get the benefit of design efficiencies and bulk product discounts whilst still offering a premium product.

It is an interesting concept and has got me thinking whether there is a market for this type of build that investors could profit from? I can see a potential market for this type of property in dress circle locations in the Southern Highlands or Byron/Lennox Head areas. Would be good to hear if anyone has had any experience with high-end single dwelling builds as investments?

Below are a couple examples of similar new pavilion-style builds.

https://www.realestate.com.au/sold/property-house-nsw-burradoo-130951602

https://www.realestate.com.au/property-house-nsw-burradoo-134522790

Vacant one acre blocks in this area range from $1m-$1.3m. Assuming a 300m2 build, total build cost of $1.2m. Add in $300k for landscaping (needs to be substantial in these areas) + selling costs, and there is potential for a decent margin on this.

Keen to hear your thoughts!

 

The Group offering the service will make money