How to Build an Apartment in Perth (the right way!)
Apartments are a completely different level of construction to generic residential construction or multi-unit developments. Technically referred to as "Class 2" construction they will have specialist engineering requirements, specialist fire requirements, acoustic requirements, numerous council meetings, the list goes on and on. We have experience from low rise through to 7 storey high multi-apartments. We offer a "development potential analysis" plus a design feasibility before we start the design process*.
There are three types of developers that build apartments -
Those that have their own building company and don't build for anyone else (often a high Rise developer)
Those that go direct to a builder(s) paying a price that cannot be checked or tendered.
And those that have plans drawn independently and then tender to the right Builders.
The reality is builders would rather tender as it minimises the drafting and design process and throws any council issues back to the client (or the Designer and B/Broker in our case). A Builders ideal world would be to just start the construction without any administration. When a builder educates himself to be a registered builder, their is no education on "excellence in design" or "excellence in drafting or shire/council troubleshooting". It is all about training for the ability to build correctly.
If your serious about doing an apartment development, going direct to a builder is not the right way. They will own the copy write and unfortunately you cannot tender another builders plans. Some of our clients have realised this mid-stream and actually paid the builder for a licence to use the plans costing more than an independent designer.
Unless you intend on setting up your own building company, "Design and Tendering" is the only way you should be thinking to yield the best return in quality of design, in quality of construction and in maximising profits. Apartment construction is not a cheap exercise and you cannot afford to have the cards held in the builders favour (unless you own the company).
Apartment Process!
We will firstly look at your budget and see if you are realistic as to what the total costs are. We could spend 2 hours just running through the breakdown of associated costs. Secondly we will select an apartment designer who has valuable experience within the suburb with a proven track record. Some designers are experts at efficiency while others have no problem spending your total budget on the first day.
Choosing a Designer for your Apartment Development!
Just because a designer says they have done an apartment development for a client before, does not give them a license to do your apartment development. There are hundreds of responsibilities and if not done and checked properly, can costs $10,000 to $100,000 in unforseen costs.
Questions need to be asked such as -
How did the apartment project come up on price (was it cheap, good or expensive). Some designers create projects are inherently cheap or economical while others are always expensive.
How did things go with the council ! (what were the time frames like). An educated designer knows what he can and cant do and doesn't leave it up to the council to tell him what he can do..!
Did the designated builder encounter issues on the design that where not in standard construction practices requiring the builder to redraw some sections before you could receive your final plans. If a builder has to redraw existing plans it will lead to delays and costs.
How was the resale in comparison to neighbouring developments ! As we have discussed in the past, some designers have natural flair while others just get the job done. It still amazes us how someone can put their faith in a designer without proper due diligence for their multi-million dollar project.
Professional Apartment Designers that can draw and complete the task successfully can be likened to a specialist in the medical industry. You wouldn't talk about having the flu to a brain surgeon...! Nor would you discuss building an apartment with a designer who specialises in residential construction or very little hands on experience. This is the most critical decisions in the entire building and developing process. Thirdly, we will monitor what is drawn so we maintain budget and shire time-line control. Shire time line control is a subject on its own, but it is basically a risk versus time-in-council approach. As an example, if you want your rooms to be larger than allowed, we will show you how much longer it may take to request a concession to a shire rule or regulation. Finally, we will tender your designs to our best network of proven Apartment Builders. A lot of our apartment builders offer varying construction techniques which we would discuss in detail. Traditional concrete and double clay brick, Tilt up concrete and the more modern SIPs and AFS construction techniques are quote popular. Some will cost as much as 20% more up front, but the build times are super-fast. Others will take longer but offer a cheaper upfront cost. We can also arrange Joint Venture investors to party up with your development.
Apartment Construction Costs!
As a rule we will work on around $220,000 per apartment. *This number is only an average though. A smaller development site tends to have the need for undercroft parking, while a larger more expansive site doesn't. All apartments must have parking provisions, their own store rooms plus a dedicated rubbish bin location. With all these shire required items there is often a need for undercroft parking. Undercroft parking is actually quite an expensive exercise as their is a need to have large open spaces that are not blocked by walls (hence the need for concrete and steel horizontal columns). Typically within the Perth area, apartments can range from $850,000 for a small 4 apartment building (fully finished and ready for sale or rent) through to over $4.5 million for a 20 apartment complex. Yes there are always going to be cheaper prices but we are working on the averages, not the best case scenario. Apartment designs can vary from 1 Bedroom 1 Bathroom through to 3 Bedroom 3 Bathroom. If you feel you want to chat further, contact our highly experienced team for an obligation free feasibility.
