St James, WA Triplex Development Diary

Hi ALL,

New to somersoft and first time post. Would like to share the journey of a commencing a Triplex development in St James, WA.

Background:

*First time developer
*Qtr. Acre block
*Retain and build model whilst occupying front dwelling as PPOR.

Subdivision:

*Demo complete
*Services complete
*Lodged to landgate for titles
*DA not approved prior to Titles by Canning. (Painstaking to say the least).


Building:

*Utilised building broker
*Tendered to builders
*Letter of intent issued for two survey strata dwellings. 3X2 and 4X2 on 332m2 and 310m2. 180m2 and 190m2 of living.
*Estimated completion November 2015.

Strategy:

*Develop and hold as rentals.
*Create equity for Number #2 project.

Look forward to sharing the journey!

Cheers
 
Hi all..

Some figures..

Purchase : $650k

Build Costs : $420 including site works and turn key finish. Options including render, raised ceilings, stone benchtops, skirting and 900mm appliances.

End Values (Guestimate): 3 x 2 - $590k
4 x 2 - $620k
Existing - $600k

Total - $1.8 approx.

Am I on the right track here with others thinking?
 
for the threads seen on this site about construction costs, 420K is a bit low?

for a duplex is approx $600K
In Perth I can get a two storey townhouse built for $300k turn key. Single storey sould be less but I was thinking 420k might be a bit on the low side depending on the size and on whether that price is turn key of course.

Looks like a good project though. I think St James is a great area!
 
I would say build cost maybe $550k, site works maybe $50k

I can send you some oldish builders quotes if interested.
 
Have you recieved your building tenders back yet?

I would be expecting somewhere between $1200 and $1400 psqm for those specs and turn key single story. And then plus some for site works.

Which builders are you tendering to?
 
Hi all..

Some figures..

Purchase : $650k

Build Costs : $420 including site works and turn key finish. Options including render, raised ceilings, stone benchtops, skirting and 900mm appliances.

End Values (Guestimate): 3 x 2 - $590k
4 x 2 - $620k
Existing - $600k

Total - $1.8 approx.

Am I on the right track here with others thinking?

Judging by your purcahse price, your worse case scenario might be:
End Values (warose case): 3 x 2 - $500k
4 x 2 - $550k
Existing - $500k

Total - $1.5 approx.

So still not too bad.
 
Judging by your purcahse price, your worse case scenario might be:
End Values (warose case): 3 x 2 - $500k
4 x 2 - $550k
Existing - $500k

Total - $1.5 approx.

So still not too bad.

purchase price doesnt have anything to do with end values surely?
 
Used as comparative sales? Unless it is somehow purchased grossly under market value. :cool:

could be purchased under value, could have been purchased a few years ago, could be anything.

purchase price of a development site, especially recently when people have paid stupid prices is really no indication of end values once developed
 
Judging by your purcahse price, your worse case scenario might be:
End Values (warose case): 3 x 2 - $500k
4 x 2 - $550k
Existing - $500k
Going from recent sales in the area I think those prices are under (depending on the land size component of course).
For the 3x2, recent sales examples:
$585,000 (http://www.realestate.com.au/property-villa-wa-st+james-117999095)
$589,000 (http://www.realestate.com.au/property-house-wa-st+james-117295095)
$559,000 (http://www.realestate.com.au/property-villa-wa-st+james-116865103)

For the 4x2, recent sales examples:
$582,500 (http://www.realestate.com.au/property-villa-wa-st+james-116357403)
$700,000 (http://www.realestate.com.au/property-house-wa-st+james-117077115)
$740,000 (http://www.realestate.com.au/property-house-wa-st+james-116460483)
Of course the last 2 are big houses on larger blocks. The $700k was also street front, which I believe attracts a higher price.

I'm suggesting that the OP will achieve $700k for a smaller 4x2 on a smaller block but I still think $550k is well under the achievable end value.
 
Hi All,

Thanks for responses!

Just to clear the air...

Build costs are for two rear single story dwellings.

1. 4 x 2 with 190m2.

2. 3 x 2 with 180m2.

Both on approx. 315m2 blocks.

Retaining existing 1950s 3x2 on 420m2 and renovating at the same time.

Tendered price for both units was $420k including site works and investor options requested.

Cheers
 
City of Canning engineering department are a complete nightmare. have they asked for retaining walls to be put up! am interested to know how you are getting on with this as we've had nothing but a world of hurt dealing with them. and its ongoing and $$$...and overkill.
 
Last edited:
Wrong thread ^^^^^?
I don't think so. The development is in City of Canning and the troy bz is asking thewesternfront how they are getting on with the City of Canning engineering department. I have a mate doing a subby in Canning ATM and they are finding the Council a PITA.
 
@troy bz. Funny you mention that, without naming names, the City of Canning (Engineering) have been painstaking! Happy to talk offline further..

Property is zoned R17.5/R30.

Was at clearance stage, but City requested a Geotech report and post report with compaction prior to DA, even when building contracts contain!!
 
Top