dev a 4 level apartment question

Hi All - I have had indication from council town planner that they would allow a 4 level apartment building on a block I just bought in st Albans subject to their approvals process - as there are really no apartments right now in St albans to base any past sales - My question is I am trying to figure out what type of apartments would sell best there- one, two or three bedders? Anyone with advice I will be happy to take it on.

Even the real estate agents around the area are not sure but think that two and three bedders are best.
 
is it st albans, NSW?

if yes, you may want to check flood level for your property.

Developing a 4 level apartment will be based on what is in demand in area and Your experience in developing land previously.

if local REA isn't confident, it is an hint that they don't feel confident about the project.

may be look at other options?
 
If even the agents have no idea - it means that you may have difficulty selling your final product. Just make sure you have enough fat in it.
 
Hi All - I have had indication from council town planner that they would allow a 4 level apartment building on a block I just bought in st Albans subject to their approvals process - as there are really no apartments right now in St albans to base any past sales - My question is I am trying to figure out what type of apartments would sell best there- one, two or three bedders? Anyone with advice I will be happy to take it on.

Even the real estate agents around the area are not sure but think that two and three bedders are best.

St Albans VIC or NSW?

Without development experience you wouldlike to do as much research as possible, if there are no apartments in the area, you may have a number of objections and no matter what the council says now, if there are objections they will flip and you may be heading for a long delay at VCAT (VIC tribunal). This is painful and time consuming.

You will need cash, the drawings for the development can be costly up to $50k plus revisions if you have objections.

Importantly, do your research on the demographic of the area, i.e young couples, immigrants....what can they afford.

Id suggest 1 and two bedders rather than 3 bedroom.

Lastly, financing.....with no apartments in the area, finance may be a little tougher.

Cheers, Ivan
 
Ok thanks for your replies - It is in St Albans VIC - The council seems very keen to get some apartments approved in the area as it is part of their development plans for the area - I have since spoken to some other agents and they have showed me a couple that recently sold as approved 4 level apartment blocks but none have been built yet - so at least I have an idea now - Will start the process in terms of if it will be financially worthwhile and stick to two bedders as the rule of thumb as they seem to sell quickly ( even though they are older 2 bedders ).

Thanks again-
 
Ok thanks for your replies - It is in St Albans VIC - The council seems very keen to get some apartments approved in the area as it is part of their development plans for the area - I have since spoken to some other agents and they have showed me a couple that recently sold as approved 4 level apartment blocks but none have been built yet - so at least I have an idea now - Will start the process in terms of if it will be financially worthwhile and stick to two bedders as the rule of thumb as they seem to sell quickly ( even though they are older 2 bedders ).

Thanks again-

If it were me, I would be very wary of being a pioneer. I haven't been to the western suburbs of Melbourne for a couple of years however, what council wants there and what the demographic demand will be are two very different things.

I could be wrong, however I could envisage demand for such new product to be available in say, Sunshine around the train hub and shopping centre and obviously closer in to the city in the inner west suburbs.

You may find it difficult to do a correct feasibility as there will not be any comparable product for you to use to establish your end value gross realisation and, that assumes there will be demand for new medium density product there. There will be a big difference in price between traditional second hand units/flats and brand new product. Speak to some agents and ascertain what they think and what level of finish you would need to provide. I would look at a mixture of two and one bedders.

Well done for having a site that allows the type of development you are alluding too, however if I owned it, I would continue the land bank (I am assuming there is an old house to give you some holding income) and wait for someone else to be the trailblazer.

This is not advice, merely my opinion. The biggest question to ask yourself is the demographic ready for brand new units in that suburb right now? If they are, happy days as long as your number crunching stacks up.

Good luck :)
 
Okay... so it is in vic!

Why not put on market advertised "Apartment site" and let market be the judge of land value?

it will give you an indication of land value.
 
well I bought it recently and have since found similar approved sites selling around the $1M mark which is around $60K per unit site - So looking financially OK right now- just crunching numbers now to see how much the approval process will cost. Thanks again for your replies.
 
well I bought it recently and have since found similar approved sites selling around the $1M mark which is around $60K per unit site - So looking financially OK right now- just crunching numbers now to see how much the approval process will cost. Thanks again for your replies.

You bought the property in St Albans?
 
Question asked from idle interest only: is four storey economic? Three storey is fine as walk-up ISTM but four needs a lift or lifts?
 
well ground floor will be parking - so will need the other 3 floors for living - basement would be too expensive- I dont think lifts are mandatory or necessary in this suburb as will not be a prestige build - moderate build quality.
 
Have you thought about your pricing strategy? I've seen a lot of new apartment developments in the outer western suburbs where the price difference between an apartment and a new entry level 3 bedroom house with land is about 70-80k. I'm not sure that's enough of a difference to get a reasonable amount of interest. Especially given there's not much of an apartment culture in these suburbs.
 
some approved apartment sites have finally hit the market and been sold recently looking forward to them going up and seeing how they fair.

Looks like one bedders to start at $250K and 2 bedder $290 minimums from the enquiries I made.
 
some approved apartment sites have finally hit the market and been sold recently looking forward to them going up and seeing how they fair.

Looks like one bedders to start at $250K and 2 bedder $290 minimums from the enquiries I made.

Could be like Point Cook where the first ones to have a go soak up all of the demand making following more risky, less buyer etc
 
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