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Highgate WA: 4 townhouses development

Discussion in 'Development' started by Westminster, 25th Jun, 2015.

  1. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    The story so far is available at Somersoft
    http://somersoft.com/forums/showthread.php?t=92162

    Basic facts
    Where:
    Highgate WA
    What: 552sqm block zoned R80
    How Much: $1.05m for the site, $2m for the construction
    When: Nov 2013
    Plan: 4 large townhouses - 250sqm, 3 storeys, double garage, 3 bedroom, 3 bathroom High Spec
     
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  2. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Latest news was that this went to Council vote 2 weeks ago. It went in with DAC endorsement for the third storey and the Director of Town Planning recommended it for approval.

    Unfortunately a number of neighbours got up and spoke against the development and the Councillors were concerned about the setbacks which we had negotiated under 'deemed to comply' and they voted no.

    So I'm off to SAT again. Official refusal came this week and my SAT appeal will be lodged on Friday.
     
  3. Arnel

    Arnel Well-Known Member

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    Good luck with it :)

    Hope SAT come back with positive news... At the end of the day urban consolidation is part of there future 2020 vision.

    Keep us posted
     
  4. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Ok time to update.

    We had our SAT Directions Hearing and opted for Mediation which is their preferred first choice.

    Mediation was scheduled for last week with a Member (SAT Judge) and was to start with an onside visit to show how the block interacts with the neighbours etc. All the Councillors were invited but none turned up. It was me, my Town Planner, the Member, and two town planners from Vincent.

    We all did the walk around, pointed out all the other houses with less setbacks than I had etc etc. Then went back to City of Vincent to discuss. Although we have no Councillors to mediate with we decided to make some assumptions about what they might like and the Member encouraged us to throw ideas around. He was really good and mentioned that my case was quite strong and not to do anything too drastic to the design.

    So I went and saw my designer on Friday morning and we hashed through a few ideas and managed to increase the setbacks to the front unit by 30-40cm. Nothing earth shattering but when the block is only 140sqm that is a lot. We also added moveable laser cut screens to help protect everyone's privacy (this was a major neighbour concern)

    This is an example of how you can have them open, stacked or closed

    [​IMG]
     
  5. Zak

    Zak Well-Known Member

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    Well done westminster.

    you mentioned in your post - $2m for the construction for four townhouses.

    So each townhouse costs $500K each for a 250sqm. That is $2000 per/ sqm? is this correct?

    it must be a very high spec townhouse?

    may i ask if the price include all site costs as well and turn key development?

    Also, correct me if iam wrong but is the Perth market slowing down at the moment? will this type of development will produce good net profit of over 20%?
     
  6. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Hi @Zak, yes these are very high spec as the area is quite 'fancy' but it does include everything from design, infrastructure/utilities, site costs, construction, landscaping etc. The only thing it doesn't include is holding costs.

    I believe I can get over 20%, and hope to achieve over 30% but this is my riskiest project due to the smaller market share, market sentiment being down and of course the risks just getting the project approved.
     
  7. Zak

    Zak Well-Known Member

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    May I ask was it difficult to get a $2 million construction loan from the bank?
     
  8. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Yes. Had to be a low LVR of 70%
     
  9. Zak

    Zak Well-Known Member

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    Would you be able to clarify ?
    Land 552sqm

    1x townhouse 250 Sqm so
    4x townhouses = 250x4 = 1000sqm

    So how does this work with 1000sqm of townhouses on a 552sqm block?
     
  10. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    The ground floor footprint is quite small, only around 90-100sqm on each block. Then there is 2 more storeys above that.
     
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  11. stumpie

    stumpie Well-Known Member

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    @Westminster - love the laser cut screens. We have full length movable shutters at home and it really makes the space useable in all weather conditions, it's really another room.
     
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  12. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Well I really should update this as a lot has happened.

    We made some changes with the screens and setback and it went back to Council meeting for the Councillors to vote on again and it was refused again. We tried to set up another mediation but the feedback we got was that the Councillors would not come.

    At this stage I decided that it might be time to consider Plan B. The site actually has a lot of alternatives but one that I liked especially was six Single Bedroom Dwellings. These are 70sqm dwellings that only require 2/3rds of a block size so I can put 6 on this block and they will have a land component of around 90sqm. The profit % is actually a little higher if I got with framed construction and the risk lower than the fancy pants townhouses that I originally wanted now that the market is a lot softer. The end $ is less though.

    So it went back to another Directions Hearing at SAT to decide what to do. We decided to book in for trial in April and in the meantime pursue an alternative DA for the single bedroom dwellings

    It's still in concept stage and not lodged but here it is Dropbox - 151020 - L 41 WRIGHT ST - v4 copy.pdf

    I really like it - of course I'm biased :)

    I've talked to one of the neighbours and they are supportive of it and will take it to the other neighbours when I get back from OS.
     
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  13. soggy

    soggy Well-Known Member

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    Surprised to see there's a Plan B with SBD. Very nice concept. I like how they are on their "own lot" with own land, courtyard etc. Just oozes added value to the end buyer.

    Would you be submitting as Built Strata? Or SBD lot subdivisions need to through WAPC first?
     
  14. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    There is a plan c, d and e too. But Plan B make sense in this market, should be less contentious with the neighbours and councillors AND still makes around 25% gross profit. Construction using framed products will take around 6mths vs the 12-18mths that the 3 storey townhouses would have taken so I will get back some of the time I've been in limbo this year.

    I haven't decided on survey strata vs built strata yet.
     
  15. LifesGood

    LifesGood Home Building & Development Consultant Business Member

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    @Westminster what are your thoughts on buyers and the whole "brick is best" psychology? Has the WA market matured enough yet to fully accept framed housing?
     
  16. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Bloody brick! Have you noticed the 'think brick' ads have started up again? I think some brick people are scared. All the eastern states renovation shows where people can just knock out an internal wall and moves stuff around has really helped people realise that there are other common building practices out there.
    I think parts of the WA market are AOK about it - especially innercity. It should be easy to get these to 8 or 9 BERS which will be another draw card.
     
  17. soggy

    soggy Well-Known Member

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    Did you have any concepts done up for Plan C, D, E? I guess one would be multiple dwellings? Would love to see them if they were done :)
     
  18. wogitalia

    wogitalia Well-Known Member

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    The younger crowd moving from the Eastern States are particularly fond of anything built with modern techniques and they tend to be a lot of those looking at inner city townhouse type setups. Solid plan I reckon.

    Just have to accept with Perth that everything will take 5-10 years longer than other areas, it's just our thing, moving on from bricks is just a perfect example!
     
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  19. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    No concept plans but yes C and D are multiple dwellings and E was just 3 houses on the block.
     
  20. bob shovel

    bob shovel Well-Known Member

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    ??o_O you'd be just preparing now for the y2k bug to strike! :p

    @Westminster what is the love affair with brick about over west? In its defence it is a good product to use. Are there timber plantations and mills over here?? Doesn't seem like a great deal of state forests around and all the good bush has been cleared for wheat and co! The south west has decent forests but is a lot locked up in national parks?

    Once you go timber you head down the path of losing quality quick(er). Over east your lucky to even find a straight bit of 4x2!