What is more profitable: duplex or triplex development?

Yes, in theory.

 

Most of the above would still hold true, BUT, from my perspective, one advantage of a quad block would be the ability (site permitting) to run the driveway down the middle of the block in a 4-pack arrangement, so you effectively only have to give up half a driveway per lot. So less construction cost and more useable land area per lot. Or as least that is my naïve take on it.

As others have said... only if the numbers work.

 

So in terms of my original comment about "Potential cost savings from having builder construct more dwellings on the one site." Is this a reality (in Perth)?

For example if you hypothetically had a builder quote X$ for one 4x2 dwelling (retain and build duplex dev), would they typically quote twice as much to build two of the exact same dwellings (not likely to be exact I know, but for arguments sake) - ie for a retain and build triplex?

In short do builders discount for volume?

And how does this affect timeframes? Would they typically have two teams on site building at the same time or build one then the other?

 

Yes building multiples does give a volume discount. For example even little things add up like one set of deliveries to one site instead of 2 if the 2 houses were in different locations etc etc. Time frame is longer than a single but not by much. They will build them at the same time-ish. If they have 2 teams they will but often one team can work quite quickly and build the 2. Might be a brickie in each and a shared labourer.

But be aware that the more you cram on a block the more expensive they are to build. A 4 x 2 on a 300sqm rectangle block is generally cheaper than a 3 x 2 on a 200sqm block as you can build more cheaply - less buildings on boundary, less complicated roof shapes

 

So what is a respectable IRR on a small development project (no more than 3 to 5 units)? For those of you that have a number of developments under your belt, what IRR do you aim for?

 

Hi all,
You said you are looking at it in terms of a 'develop to hold/rent' scenario.
My preference would be to get a triplex potential block with a retainable house in this case.
Then you can do them both at the same time, rent out existing house and develop a new house at the rear. Leave enough room to redevelop (demolish existing and build another two). Its the long way around but your getting rent the whole time, way less risk and holding costs, building equity at each stage for the next.