How Much To Build New Bungalow?

[Renoha 0]

Dear gurus, anyone knows how much it cost to build a 2.5 storey bungalow with pool on land ard 8000 sqft with plot ratio of abt 0.7? How about if i add a basement?

TIA

[3Cube 9]

8,000 sqft x 0.7 = 5,600 sqft build-in Gross Floor Area

Assume basement = 40% of 5,600 sqft = 2,240 sqft

Total GFA = 7,840 sqft (Subject to URA Development Charge, if applicable depend on location)

Project cost estimate purely based on GFA (without basis of design drawings) as follows:

Preliminaries $185,000.00

Piling $100,000.00 (Depend on Soil Investigation Report)

Structural $800,000.00

Architectural $940,800.00

External Works$392,000.00

Electrical, Plumbing & Air Con $250,000.00

Pool Equipment $80,000.00

Prime Cost & Provisional Sum $500,000.00

Total Estimate: $3,247,800.00

Please note the estimate is base on assumption on design, material selection, etc

Also don't forget there's other cost as follows:

Consultant (Architect/ Engineer) Fee

Government Submission Fee

Services Connection Fee (Water / Electrical / Gas / Telecom / Fibre)

[Renoha 0]

Thanks 3Cube!

[yoongf 11]

8,000 sqft x 0.7 = 5,600 sqft build-in Gross Floor Area

Assume basement = 40% of 5,600 sqft = 2,240 sqft

Total GFA = 7,840 sqft (Subject to URA Development Charge, if applicable depend on location)

Actually.. this method not exactly correct.

There is no need to use the baseline Plot Ratio of 0.7. Since there is no subdivision involved, no DC is payable.

For bungalow design, site coverage is 35%.

So the building footprint is about 2800 sqft per floor. X 2 floors and about 2/3 for the attic floor.

Total above ground built-in is 7476 sqft.

Below ground.. can really get creative.. since can build up to 2m all round and 2.4m in front. But basement works these days.. very expensive.. depending on the temporary works design.

But.. agar agar about 370-400 psf of land size.. shd be about there, which is about similar to your final costings.

Given the high land cost.. it makes every sense to build the largest basement possible these days.

[Renoha 0]

Thanks Yoongf!

[ilovebuilding 0]

Hi Yoongf.

I think the site coverage is 40%. . if GCB is 35%... and 45% only in 2-storey mixed landed and semi-detached housing areas.. unless there is a change of rules.

Dont think there is Development charge,

[yoongf 11]

Yes. u are right.. bungalow is 40% site coverage.

The details are here.

http://www.ura.gov.sg/circulars/text/dcdrhb_d0e4.htm

[fcar 0]

Actually.. this method not exactly correct.

There is no need to use the baseline Plot Ratio of 0.7. Since there is no subdivision involved, no DC is payable.

For bungalow design, site coverage is 35%.

So the building footprint is about 2800 sqft per floor. X 2 floors and about 2/3 for the attic floor.

Total above ground built-in is 7476 sqft.

Below ground.. can really get creative.. since can build up to 2m all round and 2.4m in front. But basement works these days.. very expensive.. depending on the temporary works design.

But.. agar agar about 370-400 psf of land size.. shd be about there, which is about similar to your final costings.

Given the high land cost.. it makes every sense to build the largest basement possible these days.

Wow, $400 psf!!. Really high construction costs nowdays. Using the same 8000Sq ft land for illustration.

At D28 Yio chio kang( mimosa), its about 8mil@1000 psf. We talking about a pure piece of land

At D10 Bukit TImah(berrima) its will be about about 14.5mil@ 1800 psf

New erection cost is same at 3.2mil.

At D10 land, construction cost is thus 22% ( 3.2/14.5)of land price, still acceptable.

At D28, it rises to 40%(3.2/8)!, how is that justifiable??

Means no one will want to do new erection in OCR/RCR?? CCR still ok?? So its not worthwhile to buy D28 land, and better to buy D10 land?? Can seasoned landed investors like lauer or yoongf comment?

Edited September 11, 2013 by fcar

[Lauer 15]

Wow, $400 psf!!. Really high construction costs nowdays. Using the same 8000Sq ft land for illustration.

At D28 Yio chio kang( mimosa), its about 8mil@1000 psf. We talking about a pure piece of land

At D10 Bukit TImah(berrima) its will be about about 14.5mil@ 1800 psf

New erection cost is same at 3.2mil.

At D10 land, construction cost is thus 22% ( 3.2/14.5)of land price, still acceptable.

At D28, it rises to 40%(3.2/8)!, how is that justifiable??

Means no one will want to do new erection in OCR/RCR?? CCR still ok?? So its not worthwhile to buy D28 land, and better to buy D10 land?? Can seasoned landed investors like lauer or yoongf comment?

I am just a newbie la, not seasoned at all...

Anyway, just my 2-cents thought below.

I don't know but I don't use the factor you used to calculate justification.

When the denominator is the land (as used in calculation of the factor), in 2009 at the trough the land price was $500 psf, it cost about $225 psf ($150 psf of construction cost x plot ratio of 1.5) so the factor was 45%. Now, the land price is averaging $1250 psf, and it cost about $450 psf ($300 psf x 1.5) so the factor yields 36%.

But in hindsight, it was clearly justifiable to rebuild a house in 2009, even when the factor yielded a higher percentage.

When we study the maths, it shows that in this bull market, the increase in land price outpaced the increase of home price. There is a newspaper article that appeared a few days ago, that said basically the same thing for other sector like condo etc.

However, In my informal pricing observation there is evidence that an investor who bought a landed house in its original condition in 2009-10, sat on it without embarking on a rebuilding, the profit he can get when selling it today is not much different from another investor who bought a similar landed but rebuilded the house. Nevertheless, the investor who rebuilded a new house is able to benefit from consuming the new house until he sells it.

Cheers!

[Lauer 15]

And for the music break.

http://www.youtube.com/watch?v=xweqsdRpG9Y&feature=youtube_gdata_player

Enjoy!

[fcar 0]

I am just a newbie la, not seasoned at all...

Anyway, just my 2-cents thought below.

I don't know but I don't use the factor you used to calculate justification.

When the denominator is the land (as used in calculation of the factor), in 2009 at the trough the land price was $500 psf, it cost about $225 psf ($150 psf of construction cost x plot ratio of 1.5) so the factor was 45%. Now, the land price is averaging $1250 psf, and it cost about $450 psf ($300 psf x 1.5) so the factor yields 36%.

But in hindsight, it was clearly justifiable to rebuild a house in 2009, even when the factor yielded a higher percentage.

When we study the maths, it shows that in this bull market, the increase in land price outpaced the increase of home price. There is a newspaper article that appeared a few days ago, that said basically the same thing for other sector like condo etc.

However, In my informal pricing observation there is evidence that an investor who bought a landed house in its original condition in 2009-10, sat on it without embarking on a rebuilding, the profit he can get when selling it today is not much different from another investor who bought a similar landed but rebuilded the house. Nevertheless, the investor who rebuilded a new house is able to benefit from consuming the new house until he sells it.

Cheers!

Well. i dont quite understand or agree with your plot ratio calculations.

A plot ratio of 1.5 may be applicable in a small landed eg in inter-terrace. So 2000sq ft land build up to 3000sq ft GFA. But in a big landed eg 8000sq ft land, do we really build it up to 12,000sq ft GFA? As i recall, even a full GCB with 15,000sq ft land, the GFA hardly goes beyond 10,000sq ft. Thus the plot ratio in BIG landeds are usually 0.6 to 0.7, with an implication that the construction costs are actually much lower then you have suggested.

In layman terms, if i buy a piece of land at 14.5 million, 3 mil construction costs seems ok. But if the land costs only 8mil, then 3 mil construction costs seems daunting!!. Result: the 14mil buyer will carry on with the purchase, but the 8mil buyer will not!!

Edited September 13, 2013 by fcar

[Lauer 15]

You can use any ratio for plot ratio, whether it is 1.5 or 0.6. I am just using the plot ratio of 1.5 to illustrate how the factor you used to measure if a rebuild is justifiable, what it said for 2009 and what it said now.

A landed investment comprises a land and then the building that sits on it. It is firstly the land that an investor will assess; in other words, the location, the environment of the area where the land sits, the overall mix of landed housing in its neighborhood.

Why?

Because he can't change these, whereas he can change the existing house of the landed he plans to buy. He can tear it down and rebuild, or refurbish it etc.

Therefore, a landed investment is really all about the land; not the physical plot size or whether the plot size is big or small.

A GCB investor don't really care about the cost of refurbishing or rebuilding an existing house.

Cheers!

[creative_vitamin 3]

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Edited September 4, 2014 by creative_vitamin

[Lauer 15]

Love this discussion very informative!

Looks like construction cost is high these days.

To high jack this thread...I have a question on inter terrace, how can we calculate the maximum gfa for an inter terrace considering the setback etc?

Also is d15 consider a good area? Eg opera estate.

Here is a handbook on GFA.

http://www.ura.gov.sg/circulars/text/dcdgfahb_d0e4.htm

Generally, for personal consumption one has a preference to live in an area to another; familiarity, proximity to the parents, school, work etc. So, it is subjective and pretty much personal. If you are an investor, then it is the judgement of whether the demand of an area is better than the others.

But if the question is whether a land plot in an area is good or not, for me I look at the land itself.

And of all the things that I look at, for the land, the first is the terrain. Specifically if the land is exposed or proned to flooding. If it is, then it will not be considered, for consumption or for investment.

Why?

Because there is nothing much one can do to rectify or mitigate a flood risk.

Sometimes, the information is available when one searches for news. Other times it is down to visual inspection, signs that the existing dwelling on the land has suffered from a flood. The architecture of the existing house, or houses in the neighborhood can reveal some information of a flood risk as well.

Just my 2-cents thought.

Cheers!

[creative_vitamin 3]

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Edited September 4, 2014 by creative_vitamin