Hi guys, I have found a development for 28 townhouses with a DA already done in the Logan catchment. I can not find a price per sqm for my feasibility and builders won’t do a estimate. I have seen prices anywhere from $1000-$1900sqm, does anyone know what the cost would be? They are 3 bed, 2 bath, double garage, two story and total of 173sqm. Thanks in advance
Cost per sqm will vary according to the finish level involved? Getting finance would be the biggest issue for a 28 town house development, assuming you need finance?
I am hoping to get a money partner for it. If I can get the ROI at 30% I can get an investor. It’s more getting the cost of building right so I can present the feasibility
Sorry, but if you have now idea of constructions costs, maybe you shouldn't be looking at a 28 townhouse site. I don't profess to know anything more about developments than you do, but when I start my developing journey, it will be on either my 700m2 or my 800m2 block on the Central Coast, not on a project that's going to cost millions of dollars.
@spludgey everyone is entitled to their opinion. I didn’t think it was a big deal asking for cost per sqm as majority of builders don’t want to call you back with a price so I thought I would try this instead
You are looking at a development in the 10 million dollar range and this is without the initial outlay for the land. Curious to know how you are funding your share. That's big dollars!
By all means, if you can pull it off, more power to you! I was just stating my personal preference to first learn to walk before you try and run.
You can always engage a quantity surveyor to try and get costing for this project. The bank will require a report from them anyway before a cent it loaned due to the size of the project. The assessment report and drawdown reports exist to protect both the financial institution and the developer.
Thoughts: open space / infrastructure contribution. Extent of driveways and common property. Single or double story. Extent of finishes in wet areas. Stone or laminate bench tops? Carpet or timber floors? $1,500/m2 might be good to plug into a roughie feaso and see if it works Nd how much headroom. If ROI is good then spend more money forming up the assumptions.
You also need to know what is included in that construction cost. For example you could use $1500 m2 which is a common figure but does it include - full turnkey finishes - council contributions - infrastructure contributions - 28 x water, power, sewer - does anything in the street need upgrading to handle the extra 28 - often power to the street might need an upgrade to handle the extra load - town planning fees - architect fees for working drawings
Try $1500 for low spec for the GFA of house, 5-10k landscaping per house, 2-5k appliances per house, 150/psqm for driveway, 8% of total construction cost to professional fees (although its already permitted so perhaps less), public open space contribution - 5% RLV, stat fees, remember to take GST off sales. Is the site flat?
