Looking for reputable and reasonable builders for apartment building in Melbourne (VIC)

Looks nice the courtyards will be great for the ground floor units.

 

Keen to share suburb of the dev? Completely understand if you don't wish to.
Will be watching with interest as we to are possibly having to go down the basement route

 

How did you go with finding a builder? We are developing 4 townhouses with basement carparking. Consideration to basement construction is waterproofing.

 

We hit a little snag n relation to TPZ. Funny thing is trees in question are all on neighbours properties. Has held us up so I'm still at tender stage but confident I've found the builder I wish to use.

 

Waterproofing a basement is an issue. There is wet and dry design. Have the builders discussed with you which one they will be utilizing.

 

No, we are not needing to go down the basement route now!

 

It's crazy how 3-4 townhouses need basement carparking now.
Is it because of the mandatory garden component to NRZ and GRZ (35%) since Marc 2017 for site coverage.
that basement carparks are now required for like a 700m block?

If you can persuade your Council to agree to a partially ventilated carpark, that saves heap of money on the excavation costs.

We commissioned a great little company to do a 3D render of our apartment block post VCAT changes. They are called ArcBlocks and nothing was too difficult for them to do..Here is the 3D render and imaging, can you spot the dramatic effects they added on their own without us asking them to do it?

 

Thank you for the mention . It was a great pleasure working with you.
Yes we're small but we sure get the job done at reasonable prices and time.

 

Hi beanie girl,

Just wondering what is your estimated total GRV and TDC for the project ?

Cheers

 

Hi Leo,

GRV is coming in at between 10 and 11 million.
Each individual apartment is unique and of different sizes.
Some have huge garden spaces, huge balconies, 2 bathrooms, powder rooms, terraces and even juliet balconies

I've been quoted 2,200 per sqm to 3000 per sqm
So constructions costs are not finalised yet.
At this point the construction costs (TDC) are coming in between 3.3 million to 4.5 million
It also depends if we want to build the second and third floor as wooden framing or as concrete.
I see a lot of current apartment developments in the Doncaster area with wooden framing for the second and third floors.
The zoning of the area might completely change in a few years, as VCAT has stated 3 times over several years in separate judgements that it is a larger activity centre than what Council has currently stipulated it is.

 

Hi Beanie,

To your previous messaged that I overlooked, apartments should be closer to circa $250k+ to build. Also depends on size - this would be a standard mix with quiet a few 1 bed. So assuming yours is more 'boutique' and would offer more 2 Bed, the rate might come in higher. However, Non union builders should be cheaper, closer to the lower of the rates you mentioned.

I usually use ballpark rates from $2500 - $3500 for GFA (depending on spec), $1000 for Balconies/Basements etc.

Also worth noting that having every apartment unique/individual is not a good thing. Its best to work on a layout that is great and replicable. That way its not only good for the builder to create again, but you can put more thought into it.

That's why towers are very efficient - there are likely 10 floorplans for a 200 apartment tower (i.e. 10 types x 20 levels).

Have you thought about selling permitted or JV with experienced developer?

 

Hi Luke, thanks for your comments, much appreciated.

Scrutinizing my plans again, the walls of the ground floor and 2nd floor walls line up (they are in line) for 6 apartments on each floor. The back 2 ground floor apartments are big, 100m and 97m because since they are on the ground floor and not obstructing neighbour's view (2 metre fence between them) we designed larger footprints. One of the walls of each apartment would still line up with the above apartment. The layout of these 2 apartments are different to the ones above as they are much larger but we still try to put as many things in tandem placement with the above apartments like bedrooms, living rooms, kitchens as much as we possibly can.

The placement of the bathrooms/ensuites, kitchen, the living room, balconies, bedooms mirror each other on the ground and second floor -6 on ground and 6 on 2nd) They're just different sizes apartments which may mean a bigger bedroom here, a larger living room there, a walk-in-robe next to a bathroom there.
So it still makes makes construction easier.

The Third floor had to be recessed so it's a different beast altogether with terrace AND balconies and different number of apartments and again differing sizes. 1s and 2 bedrooms. The 3 bedders are on the ground floor and I think I can turn one of the 3rd floor apartments into a 3 bedder as it is currently a 2 bedder with a medium sized study. Have to get Council's approval, of course, under the same permit. I have a 83m 1 bedder + study apartment which I really think should be turned into a 2 or 3 bedder too. 83m is heck of a large. The reason we put it as a 1 bedder with study was because the study was facing a light court but now that light courts are alright (bedrooms can face light courts), might be worth revisiting that apartment again with Council to have affordable housing for more people - families. Couples with kids etc

 

I speak as someone who is 5 years into a 2.5 year project with construction costs >$2m to build just 2 town homes with basement parking in Melbourne.

Your costs are likely to be much higher than you expect if you have a basement. Lots of things can and will go wrong with the basement planning. Here's a few things: mechanical ventilation, fireproofing, slab redesigns, drainage, pumps, traffic engineering. All those and more have been added big dollars for me.

I am a bit jaded as you can tell. I am sure you will be smarter than me with your project

 

Good to see the apartments sized on the larger side, definitely a bonus when selling as a lot of investors have been priced out of the off the plan game since the stamp duty changes.

I deal mainly with apartment & townhouse projects and can PM you a few builders that some of our clients have used in the past.

 

How large are the townhouses?

 

Thanks Aaron, yes, I wanted a majority of my apartments to be family sized to suit a wide variety of people - couples, families, singles, downsizers, divorcees - I fought many times with my architect to upsize the footprint and make building envelope larger, hahaha. I was just tired of seeing dogboxes being built in the 1 and 2 bedroom market. 55m 2 bedroom apartments, I kid you not. My architect has designed 55m 2 bedroom apartments.

It paid off in the end as internal amenity has become a very important issue with VCAT in the past 3 years, light through bedroom windows is also something VCAT is concerned about. Battle axe corridor windows are acceptable provided the ratio is 2 by 1 approximately. Both VCAT and Council loved the size of the apartments. Both Council and VCAT told me there were no issues about internal amenity.

Thank you for your comments. Will pm you for your builders whom your clients have used in the past as they sound reliable and your clients seem happy with the end product.

 

@LukeR , my apartments are costed at 2400 per sqm, $55,000 for lift, $350,000 for balconies and $10,000 each for car stackers. Klaus Multibase is so expensive and the China car stackers are maintenance nightmares, my architect has an Australian car stacker builder, Daniel, who built 8 car stackers for him in Lygon St, Brunswick East in a 11 apartment development but only 4 car stackers are being used.

Then there are SEC contributions (pits, points, sewer) and water and sewer contributions and open space contributions to Council, then agent selling fees at 2.2% of GRV (Gross Realization Value)

My TDC (total development costs) are thus coming in at 8.2 million (including land and houses value)
and my conservative GRV costs are coming in at 10.5 million

thus, I have 25-26% net profit on costs
is this a good figure to have?

 

Just as an extra thought - if you want your apartments to be more unique and premium I think the higher ceilings 2.7m would be more attractive to buyers?

 

i mean, as a buyer, I would love 2.7m ceilings but my apartments are all on the large size. 2.7m suggested height limits in the Better Apartment Guidelines Mar 2017 is suggested because CBD apartments are so small and cramped.

My apartment project is not subject to the Better Apartment Guidelines Mar 2017 because the DA application (planning permit application) was placed end November 2016 so I don't have to have 2.7 metre ceilings. Your idea is good but my apartment project is right next to a HUMONGOUS PUBLIC RESERVE - cricket and footy fields, basketball courts, 6 tennis courts, children's playground, public fitness equipment, public barbeque facilities ( 50 cents for 2 hours of barbie, I think), park benches, table benches, soccer changing rooms, so much green reserve space, people just need to step out of their mostly 70sqm apartments (not counting external gardens, terraces, balconies) and just walk or jog around the public reserves, so much greenery, it's not funny with my Western elevations with views of the lawn bowls club and public reserves never to be built out, the buyers are spoilt for greenery all around them.....no need 2.7m ceilings and they have large apartments anyway, really meant for owner occupiers is my dream.......
Not saying investors can't buy, but I designed them with owner occupiers in mind

 

$900k for a basement of that size seems really good value to me.
I have ended up with a very expensive basement that is only 250-300sqm and cost me close to $600k.
Don't underestimate how much a basement will cost - I'd be shocked if you can build a 822sqm basement for only $900k.