The challenge:
The UDIA were seeking to understand the impact and feasibility of the newly announced Transport Oriented Development (TOD) SEPP, and identify potential policy changes that would impact development feasibilities within Tier 2 TOD SEPP precincts.What we did:
Astrolabe partnered with UDIA to develop an evidence base (feasibility model) and produce a summary report. Our role included investigating market conditions and differences between the sites, and developing a broad feasibility assessment model using actual project costings to pinpoint any challenges under the new policy. The feasibility model determined the price to deliver a 6 storey Residential Flat Building (RFB) (reference project) in 11 sub markets across Sydney, Illawarra, Central Coast and the Hunter. The model was developed utilising data from actual projects as opposed to cost estimates to ensure that there was validation in construction and ancillary costs. Finally the model determined the markets willingness to pay for the apartment product to determine the feasibility of the projects for developers.
Results:
- We have successfully: Engaged with leading developers across Metropolitan Sydney, Illawarra, Central Coast and Hunter regions to source commercial and project data to inform the feasibility model. Researched and collated region specific data to understand the market’s willingness to pay across the sites. Developed an interactive broad feasibility model for the 11 submarkets, with the ability for users to adjust inputs to reflect their costs and required margin on cost to test project feasibility. Prepared a Summary Report outlining findings, and potential policy interventions and recommendations to improve TOD SEPP outcomes.