Cost to build high rise apartments.

[units4me]

Here's a curly one.

I'd like to get a bit of an idea on high rise apartments construction costs.

The Surfers Paradise site is almost 3000m2 with about 40m river frontage and is zoned for 18 stories.

Assuming 4 units per floor (or possibly more) of about 130 m2 each x 18 stories =72 units.

Also, all associated building works, including basement parking, lifts, services, lobby, nice riverfront pool, common areas etc etc.

Is there an approx $ per sq metre amount, or does anybody know of some similar type project and what it can cost?

Reason that I ask is because I own a unit in a rather unloved complex of units, nearly all rentals, which sits on an extremely valuable piece of prime land. I've spoken to a few of the other owners and we seem to share the view that this is ultimately the way to go.

Basically i'm trying to gauge what the property would be worth to a developer, so that we can determine whether it's worthwhile to proceed further.

I would appreciated any feedback from those experienced in this area.

Thanks in advance.

 

[davewill]

The quality and size of the development will impact largely on the square metre rate.
Top end unit developments (on smaller sites) would be about $5000/sqm and could be a fair bit more.

 

[Player]

Hey units4me,

have a look at the following:

http://www.bmtqs.com.au/construction_cost_table.htm

Also be mindful that whatever the zoning for number of stories is, may not be what can actually be developed. Depends also on how much of the site they allow you to build on and how much is to be open/free space (GFA - Gross Floor Ratio). Then there is FSR (Floor to Space Ratio) which will determine how much floor space you can build on the building footprint (GFA). This will determine if you can exploit the height/stories zoning.

Also from memory (I was looking at a site earlier this year) on the Gold Coast there is a measure they use of how many square metres (of site area I think) you need per bedroom.

Also navigate the council site also:

http://www.goldcoast.qld.gov.au/default.aspx

Hope this helps.

 

[kph]

Reason that I ask is because I own a unit in a rather unloved complex of units, nearly all rentals, which sits on an extremely valuable piece of prime land. I've spoken to a few of the other owners and we seem to share the view that this is ultimately the way to go.

Basically i'm trying to gauge what the property would be worth to a developer, so that we can determine whether it's worthwhile to proceed further.

I would appreciated any feedback from those experienced in this area.

Thanks in advance.

Its worth land value to a developer.
Which will be a lot less than $xxx,xx multiplied by the number of strata units in the complex at their current market value unless the site is completely under utilised on plot ratio.

The developer will have to work backwards from a proposed completed redevelopment and take off all the associated costs incurred in getting to that completion stage to figure out the land cost he can afford to pay for the site. This would also have to include the demolition cost to clear the site.

kp

 

[units4me]

Thanks for your replies guys, very helpful.

KPH, that was what i was thinking of, working backwards to get an idea of what it would be worth to a developer, for it to be viable for him.

 

[Rockstar]

U4Me,

I have no experience in this field but thought that I would share a story.

I have a friend who is a valuer/investor/small scale developer. On the side he sources commercial sites for people. One of his current clients is Aldi Supermarket chain.

Anyway he told me this story the other day about an aquaintence of his that bought an old block of motel units ( I think they were two or three storey) on the Gold Coast - Broadbeach or S. Paradise - for 3 mill in the last year or two. He was clued up on the DCP and saw potential in a high rise DA being favourable. He spent 100k getting the DA approved for a 16 storey ( I think ) block of units and the site with DA approval has been revalued at 8mill.

I would be looking seriously into your options as it sounds like you have great potential in that site.

Regards, Ian

 

[kph]

Guys, you are forgetting something which is critical to moving forward or just wasting time.
You need the agreement and consensus of every owner befor you can consider the redevelopment route.
Its very different when you buy a block of units and have 100% control and say in what happens with the property vs being one owner in a group of strata units.

Even if 90% of the owners agree and one owner disagrees, you will not get your proposed redevelopment underway, so it becomes a waste of time and effort in considering it.

kp

 

[craigb]

an offer of sighn the paper and you get a financial/cut$$4 and a brand new unit, may work!!

 

[davewill]

You may already have a developer as an owner already. Or an investor wanting to get control of the whole group....to add value as earlier explained.
I know of a situation of a block of 4 units (waterfront) where one of the owners is the body corporate of a 10 storey building located behind it.

 

[Aaron Sice]

client of mine has just finished a 16 unit - 4 storey apartment block in Cairns - was about $2700sqm with all the lifts and fire regs etc.