Considering building a home in Brisbane? You must read this…

I’m currently in the throes of building my own family home in New Farm, so I can fully appreciate the highs and lows experienced by those who have embarked on this pathway before me. 

Gone are the days when construction costs sat at roughly $3,500/sq m. We’re now looking at around $8,000-$10,000/sq m for a bespoke prestigious home in this city of ours that is fast becoming a global destination.

The builder behind the construction of many of Brisbane’s elite properties, including a new $18M development, is Tim Black of Black Developments. Tim’s a mate, and my brother-in-law, so I’m fortunate to have his number on speed dial to frequently bounce around ideas. 

We were chatting this week about the industry, in particular costs and innovation, and I thought these insights and advice were worth sharing.

On construction costs:

• While costs have risen significantly, they seem to be stabilising 
• This is partly due to subcontractor competition which increases production
• Massive growth over recent years has sifted out builders

On lifestyle factors:

• Fifteen years ago, a large house was 450sq m to 600sq m 
• Prestige projects are now anywhere between 800sq m and 1800sq m
• Life is changing and clients are desiring larger homes to accommodate offices, gymnasiums etc.

On prestige property growth:

• The request for greater detail and innovation in a build is a big factor
• One of the biggest generators is the rise in Brisbane’s high-net-worth individuals 
• There were no $20M sales in Brisbane two years ago, now there’s multiple

On contracts:

• Black Developments has implemented cost-plus contracts only 
• Cost-plus offers clients more control, it’s open-book and transparent
• If the money’s not spent, a client doesn’t pay for it as opposed to a fixed price contract which generally includes up to a 30% contingency

On advice for those wanting to build:

• Source and trust a good team including the builder, architect and interior designer
• Work with all of your team from the start ie. don’t wait to approach your builder once you have the design package
• Black Developments regularly consults with architects and engineers on everything from preliminary pricing to building possibilities 

Final thoughts:

• Brisbane’s architect-designed homes are pushing boundaries like never before
• Every single day the prestige market is delivering on new and innovative designs 
• Black Developments is preparing to build an $18M home, that’s not including the value of the land or the resale price
• There are $50 to $60 million residential properties in Brisbane, they just haven’t hit the market yet

I hope you enjoy the read.

Matt Lancashire