Designing a multi-level residential building in Adelaide CBD

[GoAdelaide]

Hi - I am in the process of deciding what sort of building I should put onto a pot of land in Adelaide CBD. I have come up with a set of questions, and would appreciate your thought on them.

1. What is the demand of the market? How many apartments of different size/configuration/price-bucket can be sold within (say) a month?
2. What is the demand for different quality (High amenity vs. No-frill.) of apartment? High amenity is defined as having substantial common area, large foyer, the availability of water (sauna/pool/steamroom) & sports facilities (tennis/squash/bowling/golf-simulator) & cinema. Should we build less apartment and use the space for amenity? Would you pay a premium because of the amenity? How much?
3. Is there an observable difference in terms of price per unit sq meter between different size of apartment?
4. Are you willing to pay a premium of higher ceiling? Say 2.7 vs. 3.0 meters.
5. Are you willing to pay a premium of duplex/mezzanine type of apartments?

 

[Welcome]

How big is the block and how many stories do you think you will get DA ticked off for?

But to answer some of your questions, depends a lot on the price. If they are priced well I am sure you can sell a lot in a month. Also in regards to delux / budget, everything has a price that the market is willing to pay.

I am not too familiar with CBD apartment market, however if you are looking for a deluxe apartment on fringe for comparables, check out the air apartments (http://www.airapartments.com.au/).

Also doesn't seem to be a great deal of price diff per sqm as developers seem to relate the price to sqm quite closely. You will find the smaller 1 bedders will often get a bit of a premium for sqm as they will have a better yield per sqm (but also more expensive to build per sqm).

 

[GoAdelaide]

Thank you for pointing out the Air apartment, it hasn't shown up on my radar so far as I have been focusing on those inside the city. Having said that, it indeed is 1 of the better finished apartments in Adelaide, at least on paper.

At a rough estimate, the block we have can accommodate up to 22000 sqm of residential, probably translates into 200 units of various sizes. Location is right in the head of the CBD, that is all I am allowed to say at this point.

Among the stakeholders, we are debating between the options of no-frill student pad vs deluxe executive residences. Personally, I wish to go as high end as the market is willing to accept, providing facilities that no other developments have. I hate to see a generic block of "shoe boxes", it is boring for the residents and trust me it is boring for the developer as well.

Problem that I am facing is, I will lost my "high-end" argument if I cannot justify the higher cost by proportionally higher reward. Minimum acceptable standard will prevail at the end to maximize revenue.

Any more thoughts?

 

[radelaide]

All I can say is I wish you luck in dealing with the Adelaide Council. ... seriously...

 

[grossreal]

hi
interesting post
you are looking at developing the units to a price and trying to work out were the margin will be separated.
with 200 units I would have thought you would know and if you don't starting with 200 is a bit of a big throw at the market
what type of investor or home owner are you aiming at is the question not the height of the ceiling.
you would do better to jv with a developer and then work with them and work out which market you are wanting to develop in.
if as your post says you are in a low interest high cash market and you wish to develop in any of the aust markets you would do well to jv with a development company
yes you give away profit but you gain market knowledge and building expertise which you don't get from a board
most people on this board would not buy off the plan nor alot units in blocks of 200 or more
I would be interested in having a chat with regards not only your block of land but you may well have investment or construction funding which we could use.
with regards to your posts and what would you pay for
the answer is very simple no two buyers are the same
2.4 is the min 2.7 is fine and 3 is better
but it would be a game developer that designed 3 m on each floor above 4 storey most councils with have a bit of a laugh at you
councils here are not like most countries they don't like anything above the size of a bin
never mind 3 m high ceilings
high end does work but it depends where it is
what is sees
what is in the area
and what the area is preceived to be.
the coat hanger on macquarie street is a prime example held there price and have still increased
but they are not the norm investor
and would be very suprised if anyone living or investing there was on this board the min price for a 1br is 1.7 mil now (75sq)
adelaide for me at this stage is not a multi high level area
your high level and my high level are very different
high level is bus system light, music,heating,video, window blind movement, bus spa, full high grade kitchen
high end tiles italian or spanish
german fittings
german lighting
thermal flooring sectioned to heat different rooms at different temp and at different times
the price of this type of property is about 2 to three times the price of the mid level
but you do need to work out you sales difference and that can be 20% of the margin if set wrong
and heights or spa's is not the issue
one who is you potential clients to be
maybe thats what your asking
if it is
not sure if this is the right board
but welcome anyway
if find it hard to read
read again

 

[GoAdelaide]

Hi Grossreal -

Thank you for your feedback. Would you like to elborate on your comment of "but it would be a game developer that designed 3 m on each floor above 4 storey most councils with have a bit of a laugh at you.... councils here are not like most countries they don't like anything above the size of a bin
never mind 3 m high ceilings"? My apoloigy, but I don't think I am getting your point.

You mentioned Macquarie Street, from Sydeny, right? Obviously Adelaide CBD is not Sydney Circular Quay. The internatinal market would be quite insignificant in Adelaide, if exist at all. IMHO, the level of internal finish is second to the design, althought certainly critical to the image of the final product. Besides of what you have mentioned, we could have throw in other gimmicks, like finger print lock, bathroom TV, electronic toilet, the list can grow as long as the market will pay for it. May be a "luxury" package option is the way to go.

Thru the discussions I had with the local "experts" in Adelaide, we have not been able to come to a consistent view, and hence why I put these questions onto a public forum. Sorry that I wasn't able to respond earlier, only return from an overseas trip last night.