What buliding rate per m2 are you achieving?

[Mamaof3]

Hi All,

After our last round of tendering a construction job out, the build rates seem to be getting higher and higher with each development. So i was just curious to see what other Developers are achieving as an overall average m2 rate.

We're in Adelaide so I guess the rates will vary depending on which state you're in but just interested to hear what others are achieving.

We've always been able to achieve <$1250/m2 but last lot of quotes we've just received are around the vicinity of $1450/m2. A $200/m2 difference in build rate can drastically affect margins so its a hugely important factor when determining whether a development is going to be profitable and worthwhile in proceeding or not. But $1250/m2 is for a complete site generally with a common access/driveway (thats the sort of sites we normally develop) so all inclusive of perimeter and internal fencing, all civils, working drawings, energy efficiency reports, private certification, the build itself, perimeter paths & driveways (we usually go paving), basic landscaping (usually minimal lawnm mulch and native plants), fixed priced footings, the complete package turn-key.

We always use boutique builders as well so none of the bigger project builders but I don't believe that makes a difference because we always get at least 1 bigger builder to quote up a job just so we can compare with our other quotes and they've never been competitive.

So what rates are you achiveing?

 

[stumpie]

Hi All,

After our last round of tendering a construction job out, the build rates seem to be getting higher and higher with each development. So i was just curious to see what other Developers are achieving as an overall average m2 rate.

We're in Adelaide so I guess the rates will vary depending on which state you're in but just interested to hear what others are achieving.

We've always been able to achieve <$1250/m2 but last lot of quotes we've just received are around the vicinity of $1450/m2. A $200/m2 difference in build rate can drastically affect margins so its a hugely important factor when determining whether a development is going to be profitable and worthwhile in proceeding or not. But $1250/m2 is for a complete site generally with a common access/driveway (thats the sort of sites we normally develop) so all inclusive of perimeter and internal fencing, all civils, working drawings, energy efficiency reports, private certification, the build itself, perimeter paths & driveways (we usually go paving), basic landscaping (usually minimal lawnm mulch and native plants), fixed priced footings, the complete package turn-key.

We always use boutique builders as well so none of the bigger project builders but I don't believe that makes a difference because we always get at least 1 bigger builder to quote up a job just so we can compare with our other quotes and they've never been competitive.

So what rates are you achiveing?

I think the sqm rate really depends on the type of build e.g. 2 storey vs single storey builds. However, judging from the posts you've made I think you mainly build single storey in perth it's probably between $1300-1500. Westminster or MTR or Sanj may be the more experienced people for Perth.

 

[Mamaof3]

Yeah we typically build single story...2 storey townhouses we're able to typically achieve <$1450/m2.

So sounds like thats pretty much the going rate now and its roughly on par with the other states

Thanks for your reply

 

[Erica]

my build started Aug 2013 completed Dec same year, $1000 per square m build (inc. footings), single story, lowest level specifications, ie 2.4m ceiling height, face brick only, 20 degree roof pitch, laminate benches, minimum tiling to wet areas (not including floor coverings/ driveway/ footpaths/air con/rainwater tank/ retaining walls/ gardens- did these ourselves, brought overall per m2 cost up to $1285 per m sq but would have been more to get tradies to do it)). - hmmm as I type, I realize you were getting a good rate at $1250 to have the builder do full turn key for you, I took 6 weeks off work to finish off our build and it was bloody hard work

 

[Mamaof3]

my build started Aug 2013 completed Dec same year, $1000 per square m build (inc. footings), single story, lowest level specifications, ie 2.4m ceiling height, face brick only, 20 degree roof pitch, laminate benches, minimum tiling to wet areas (not including floor coverings/ driveway/ footpaths/air con/rainwater tank/ retaining walls/ gardens- did these ourselves, brought overall per m2 cost up to $1285 per m sq).

So we're around the same mark then...our current build is $1250/m2 finished (inlcuding the RWTs, A/C, driveways & paths, floor coverings, gardens, the full sh-bang) but latest quotes we're getting for another site are up around the $1400/m2 mark before negotiations. Not sure how much we can negotiate but i'm thinking we're going to have to budget in $1450/m2 for our builds from now on.

We could shave the costs by taking out a/c, reducing ceiling heights to 2.4m, etc if we're desperate

 

[Brian84]

Hi I am new to,this site and haven't quite worked it out yet. I know it's a bit off topic but can anyone tell me the difference in m2 when building a house new and old m2.

Eg most homes are worked out off 350m2 but there is an old term how they work out like 25m2. Hard to explain but can anyone explain it to me.

 

[shorty]

Do you mean square metres vs squares? A square is an imperial measurements that equates to approximately 9.29 square metres.

i.e building costs may be $1500 per m2, or $14000 per square

 

[Brian84]

Thanks shorty that is what I was trying to get at. Greatly appreciated. Love this forum.
I am still trying to work out how to start threads with questions, I am looking to start investing next year and I know,this forum can answer a lot,of my questions.

Thanks again.

 

[stumpie]

Mamaof3 & Erica

Could i ask what type of homes you build i.e. 3x2, 4x2 or townhouses?

And do you build 2 or 3 units on a block or do you build these on full blocks?

TIA

 

[Mamaof3]

Mamaof3 & Erica

Could i ask what type of homes you build i.e. 3x2, 4x2 or townhouses?

And do you build 2 or 3 units on a block or do you build these on full blocks?

TIA

However many we can squeeze on there . We have found that the days of making money on getting 2 or 3 on a block is long gone unless you can secure the original block a damn good price. Our minimum has been around the 6 dwellings on the block (block is community titled into 6 individual allotments)...our last one was 11, current ones are 15, 6 and 8. Really varies depending on the Council zone/policy area and what they allow for example, the one that we've got 8 on has no minimum site area stipulated so we can go as low as we like so long as we can meet all the other criteria so our blocks are like 80m2 each to fit a 2 bedroom townhouse onto.

 

[Mamaof3]

Mamaof3 & Erica

Could i ask what type of homes you build i.e. 3x2, 4x2 or townhouses?

And do you build 2 or 3 units on a block or do you build these on full blocks?

TIA

Forgot to answer the other part of your question...over the years its always been 3 bedders 2 bathrooms but times have changed and so we've adjusted with the market and its needs. We're still doing 3 bedders (if room permits we squeeze in a study nook) but we are doing quite a bit of 2 bedders at the moment.

 

[stumpie]

Forgot to answer the other part of your question...over the years its always been 3 bedders 2 bathrooms but times have changed and so we've adjusted with the market and its needs. We're still doing 3 bedders (if room permits we squeeze in a study nook) but we are doing quite a bit of 2 bedders at the moment.

if you don't mind what end values are you getting for 2 bedders and what suburb?

 

[PS10]

Hi All,

I just wanted find out when people work out price per m2 for their developments, do they include garages, balconies and alfresco areas within their calculations?

 

[MJD]

Hi
Can you please recommend some townhouse builders in Adelaide region please, I have plans for 4 townhouses to go ahead soon
thanks

 

[Mamaof3]

I've not found over the past year that you just because a builder gives us a good rate on 1 development, that i can rely on getting that same rate (or even close to it) on the next development. They vary so much from site to site (for what exact reasons i'm not sure) so I always tender it out to at least 5-6 different builders.

Recent builders we've had quote on jobs include:

-melisi homes
-madison homes
-bettio
-adelaide designer homes
-hot property group
-fairmont homes
-metro property

We ended up going with Fairmont for our next development which is the first time we've chosen a project builder over a boutique builder...but it all came down to cost and they were the most competitive.

Hope this helps.

 

[Mamaof3]

if you don't mind what end values are you getting for 2 bedders and what suburb?

End value of $380K in North Plympton (2 bedders)

$330K in Pooraka (these are 3 bedders)

$435K in Brompton (2 bedders)

 

[MJD]

thanks a lot Mamaof3, that's very helpful
cheers
MJD