Cost Model: Apartment schemes A depressed residential market and strict apartment guidelines on floor space and storage have made detailed costings all the more important, writes Jason Hobson-Shaw at Davis Langdon PKS Since the heady days of the Celtic Tiger the apartment as a product has changed significantly. We can all remember the height of the Section 23 urban renewal schemes of the 1990s, where the majority of apartment developments where offering the 38m2/55m2/70m2 areas respectfully for 1, 2 and 3 beds. Over the course of the last ten years however there has been increasing pressure to deliver larger apartments. The introduction of the Sustainable Urban Housing Design Standards for New Apartments in September 2007 by the Department of the Environment, Heritage and Local Government raised the bar even further by recommending minimum standards for floor areas for different types of apartments, storage space, size of apartment balconies and room dimensions for certain rooms.

As a result the majority of the developments that are currently on offer to the market are much larger apartments, with a wider choice of apartment types, greater degree of storage and private open space, higher quality bathrooms and kitchens and often times very high quality communal open spaces. Although perhaps not evident in the current market, there is an underlying demand for the new and improved apartment product in urban centres around Ireland. It may be difficult to pin point when the market will bottom out but we can be sure that when it does start to return it shall be a very different operating environment as the industry has received a serious reality check. Gone are the days of rushing a development to the market in the knowledge that it will sell, the new dawn shall bring a much more analytical approach, as developments will need to be as efficient as possible to make them viable and the role of the costings on apartments sizes and market prices has become more invaluable than ever. The importance of detailed analysis of a proposed scheme at sketch design stage can not be over stated and is vital to the success of the project. As with any construction product apartment schemes cost can vary substantially depending on location and quality of development, density on scheme, plot ratio, the layout of blocks, number of apartments per core, floor to wall ratios, net to gross ratio, average apartment size, the specification of the envelope, services and finishes, all of which shall strongly influence outturn costs. One recent example of an apartment schemes successfully brought to market to a very high level of specification is The Waterfront, Hanover Quay, Dublin 2. It is a mixed use scheme in the heart of Dublin offering a collection of 68 apartments to suit all lifestyles, from penthouse living to 1 and 2 beds, each home is finished to exacting standards and include underfloor heating, smart home technology, Siematic Kitchens, 9ft ceilings and generous balconies. The scheme also offers a waterside retail opportunity of some 380m2 and approximately 7,000m2 of offices space with roof level glass box spaces offering views of the city. The scheme also includes 100 cars spaces and landscaped public areas. The projects featured in our benchmarking graph on page 41 illustrate the cost per sq m of 10 recent projects at various stages in the Greater Dublin Area. Projects 1 - 3 represent schemes that have a medium to high specification with an efficient layout and both moderate net to gross and good wall to floor ratios. Projects 8, 9 & 10 represent schemes at the top end of the volume residential market with what could be considered efficient layouts and design but are appointed with the highest level specification. It is note worthy that “tower” type developments over multiple level with 1 - 2 apartments per core coupled with poor wall to floor rations shall attract a significant premium on the figures stated below.

For a Cost Model, we have used an indictative project consisting of approximately 38,500m2 with 365 high quality apartments in the Greater Dublin Area, including very high specification bathrooms and kitchens, high floor to ceilings in all principal rooms, generous storage space, extra large balconies and glass sliding wardrobes. A list of assumptions and exclusions are listed at the end of the cost model and these should be considered in relation to specific projects. Professional advice should be sought in relation to construction costs for specific project proposals.