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Small/medium Sized Land Development

Discussion in 'Development' started by iDex, 20th Sep, 2015.

  1. iDex

    iDex Active Member

    Joined:
    25th Jun, 2015
    Posts:
    38
    Location:
    Perth
    Hi everyone,

    I'm quite interested to know if anyone has done larger land development/subdivision? I guess what I mean is land developments beyond 1ha or 30> blocks?

    If so, how does one work out the feasibility of such projects? What needs to be factored it (traffic, sound, surveying, utilities, council submission)?

    How much would cost to develop at a per block basis? ~50k or am I way off the mark?

    Cheers,
    Dex
     
  2. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    5,805
    Location:
    Sydney
    For a development of that size, personally I would definitely want to engage a Quantity Surveyor to get some initial costing advice.
     
  3. HD_ACE

    HD_ACE Game-Changer Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    449
    Location:
    Perth
    To many variables. Probably closer to the 100k mark. You may need a substation etc. Talk to @mrdobalina hes been going through/investigating similar in Perth and knows the costs involved.
     
  4. jippa3000

    jippa3000 Member

    Joined:
    5th Jul, 2015
    Posts:
    15
    Location:
    Melbourne
    As HD_ACE said so many variables, where is the site located in terms of services such as water, electrical, sewer etc. will you need traffic lights or an intersection created, and on and on it goes. This is not a reason to give up on the idea just to look at it from a site by site basis.
    To give you an idea we recently acquired a block to fit around 400 units, this will have a build cost of around $135,000,000. Our builds can cost us say between $160k-200k depending on fit out so that makes the developing costs on this one around the $150k-$190k per lot.
    Can be a lot more than people would expect so really make sure you do your homework and get around people that have done it before, but start small and work your way up :)
    Good luck with it!
     
  5. AndrewTDP

    AndrewTDP Urban Planning Consultant Business Member

    Joined:
    1st Jul, 2015
    Posts:
    765
    Location:
    Newcastle
    I've done 20 plus on a consultancy basis so happy to talk approvals consultant reports etc but can't comment on finance.
     
  6. Jeffb

    Jeffb Active Member

    Joined:
    13th Jul, 2015
    Posts:
    43
    Location:
    Melbourne
    My (day) job is a civil engineer and primarily do large residential subdivisions. Generally on larger projects, the civil engineer is the principle consultant (as we do the most).

    As mentioned in the above posts, there are way to many variables to give a blanket cost per lot.

    If anyone needs a feasibility done on land they own, or are genuine about buying, we generally do this pro-rata, so just get in contact.
     
  7. Ryan2134

    Ryan2134 New Member

    Joined:
    28th Jan, 2016
    Posts:
    2
    Location:
    Sydney
    Hi Idex,

    I assume your project is in Perth, how is it going?

    I am doing a 60 lots subdivision in south west Sydney, happy to exchange experiences.
     
  8. Cactus

    Cactus Well-Known Member

    Joined:
    18th Jan, 2016
    Posts:
    993
    Location:
    Melbourne
    I have managed 2 lot to 2500 lot subdivisions. You need an engineer to provide a costing. Too difficult to just use a rule of thumb as DCPs vary so wildly growth area to growth area.

    The old rule of thumb was 1/3,1/3,1/3 eg $50k land $50k subdivision $50k profit. Unfortunately these days have gone the biggest winner being the council, SRO and ATO.