Hello Developers, I am curious to know the bits and pieces around sourcing a land for getting permit for around 20 odd apartment permit. I have got around 750 sq land in a zone which allows for apartment development. Just want to know where to start, if that is enough land or where to start doing the feasibility study. Thanks
What Scott said. Discuss with a town-planner to start. If they advise you can do x amount of levels with certain conditions etc, get the architect to begin draw it up.
Hi Dev_melb08. My process is generally as follows... review planning controls height limit, Floor Space Ratio, Boundary setback requirements, etc... Look at carparking layout for site, Look at a typical unit layout per floor. run the numbers on construction costs compare with the projected re-sale value. (Based on local recent sales) I typically find that carparking drives the capacity for the site. (in the Mid-North Coast NSW). I've also reviewed a couple of DA Approved schemes, where the build cost basically equals the resale value. Each of these schemes can be 'tweaked' to get more apartments, lessen the build cost and improve the feasibility. It is very important to review the numbers as soon as possible. I don't understand owners who would spend $100k in drawings/approvals on schemes that don't work! … and then have to sell the blocks as DA approved sites. (Perhaps they're hoping for a savvy builder to buy themselves a job for a couple years instead of an investor looking for a return). Here are a couple of examples in the Port Macquarie CBD, 1000m2 site, DA approved for 9x2 bed apartments. $4.9M project (incl. land purchase, all approvals, consultants, build costs, marketing & agent fees, holding cost allowances, etc...) with a projected $4.9M return. 'tweaking' the scheme provides an additional 2 apartments with a 3 bed penthouse and a couple of 1 bedders. Similar build cost, but now the project has $1M profit. A healthy 120% ROI. Another is a 1700m2 site, DA approved for 17 x 2 & 3 Bed/2Bath apartments. $11.2M project with a $11.2 return. 'tweaking' allows the reduction of a lift core, simplify the build, increase the yield, improve the apartment mix. Same building envelope, same floorspace. 24 apartments, mix of 1,2 & 3 bedders, with a projected return of $15.1M. A very healthy 134% ROI. Each of these projects has the potential to negotiate on the asking prices and improve the returns even further. Fitting 20 apartments on 750m2 would be interesting. If you have front and rear vehicle access you might be able to get a 10 car basement garage, and another 4-5 at ground level, aim for 4 or 5 apartments per level over 4 or 5 levels... you'll be getting close... (making lots of assumptions about your site though). Its some fun food for thought.
What is the zoning? This will automatically determine what height controls are likely to be imposed. Also look at the context though. If you're surrounded by low-rise e.g. 1 storey houses then it's unlikely that you'll be able to develop a 4 storey apartment even if the zoning technically permits This is critical to accurately undertake a feasibility study
I have a planning permit(DA Approval) for 22 apartments in a GRZ zone on 1260 sqm of land and I have to have a basement carpark of 23 cars and 7 car stackers. My apartments are sized as all 1 bedders are 50m and above, all 2 bedders (mostly with 2 bathrooms) are all above 65 metre and my 3 bedders are 100m, 97m and 83m respectively. Is yours an RGZ zone, it sounds like a Residential Growth Zone (RGZ).......but wait a minute -are you sourcing a piece of land for apartment devellopment? Or do you have already a piece of land 750 sqm that is zoned RGZ. Your message above has contradictory statements
