A feasibility study example will help you understand how experts in Victoria make your property development venture profitable, and that’s what you’re about to find out!
A good development feasibility study will outline a structure that ensures the smooth execution of the project, minimises organisational chaos, reduces the chances of mismanagement, and ensures the project’s scheduled completion.
Suppose you’re curious about the inner workings of a feasibility study. In that case, we’re about to break down and explain an example of a feasibility study report from our industry-leading experts at SQM Architects.
So stick till the end!
What does a feasibility study tell about your site?
A feasibility study is conducted to ensure that the proposed project meets its target outcome. The property project is analysed to test if it is commercially viable and meets all necessary needs.
The process of a feasibility study can be divided into three crucial stages. The first is the gathering of data on the site. The second will be the analysis of this data, and the third will be a recommendation and proposal for development.
The more accurate and detailed your development feasibility study is, the better your outcome will be when it is implemented.
While the three stages may be an oversimplification of the process, let’s dive deeper into what a land development feasibility study by the experts shows you about your site.
1. Site analysis
A site analysis begins with outlining the physical features of your site, its surrounding landscape (e.g., vegetation, commercial/residential buildings), and the neighbourhood character.
Collection of relevant information about your site also includes verifying the type of property development zone it falls into and the regulations that come with it. The neighboring dwellings are also analyzed, as they will set precedence for your site’s design and construction.
2. Regulatory analysis
A site analysis is followed by a regulatory analysis which is often closely linked to the zone your land falls into. For example, whether you require a planning permit for the subdivision, extension, or construction of two or more dwellings on your lot depends on the local zoning and planning overlays.
There are also other regulations your site might have to follow based on your local council’s demands, such as the Vegetation Protection Overlays, energy efficiency requirements, and other local laws.
It is crucial to have this part of your site feasibility study conducted by professionals to reduce the chances of being rejected by your local council or facing the consequences of not meeting a regulation during development.
3. Constraints and limitations analysis
While every site will provide you with certain benefits over other locations, there is always a range of set constraints and limitations you’ll have to consider before going forward with the design stage of your property development project.
Factors like land subdivision feasibility and particular provisions of your land, e.g., maximum build height, street setback, site coverage, private open space, and landscape and services features like adjoining recreation areas, street trees, underground drainage, or overhead power lines will greatly affect your finance, design, and overall property appeal.
The constraint and limitation analysis is another essential part of a property development feasibility study example. Your local experts must always conduct it to get the most viable outcome and eliminate any concerns regarding the nature of your development site.
4. Development potential analysis
A land development feasibility report is complete if it explores all opportunities available for your site’s efficient and profitable development.
Whether your lot falls into a residential zone, a commercial zone, or both, you’ll need to consider all sorts of plans before implementing the one that fits your needs and desires outcomes as an investor or developer.
Eventually, this also means saving potential costs from your budget or highlighting opportunities that will benefit you more (financially and functionally) in the long run.
5. Development recommendations
As experienced professional architects in Victoria, the SQM team doesn’t only stop at giving a cost/benefit or limitation analysis. The best part comes when you’re all done with the site analysis stage and move on to real planning.
Development recommendations in a feasibility study example bring all the previously collected data, combined with your ideals, to life. This includes several building options and details on your site’s design considerations, layout, and massing plans.
6. Project program and consultant fees estimate
Ultimately, a land development feasibility study can only be concluded with a budget estimate and guidance for the next steps in your property development journey.
As a property developer or real estate professional, you’ll always need to prioritise sticking to the budget, minimising added costs, and planning to maximise your returns in the most effective way possible.
All great decisions are made when you obtain accurate information at the right time. The experts know when to guide you and keep things transparent for you to see the potential cost during every stage of your property development project.
Example of feasibility study report – what it shows about your site
At this point, you already know what a property development feasibility example will tell about your site. And when we say tell, we mean all that industry jargon mixed with detailed explanations of how things should work and why.
However, certain things can’t be explained through words, which is why a feasibility report by experts goes beyond telling tales and estimations. A great report paints the picture of a successful property development project.
It shows what needs to be shown and understood, including mapping, tracking, layouts, and visual design considerations for more accurate analysis.
Eventually, you expect to learn and understand what your site should and will look like after development. And that’s exactly how experts approach it for your convenience by visualising the following aspects of your site feasibility study:
- Zoning regulations
Since half of your property analysis depends on zoning regulations, a comprehensive feasibility study example highlights the exact zone your land falls into and a complete description of regulations you must abide by during development.
The land description section also clearly states and explains any planning/building permit requirements you’ll need to consider during planning and construction.
The following sections on opportunities, constraints, and design considerations will expand on how these requirements can be used effectively to make your design functional and profitable.
- Opportunities and constraints
Under the site analysis section, you will typically find the property’s geographical location with a locality map marking the dimensions of the lot and its surrounding.
This will help you visualize how your locality and neighboring dwellings impact your property’s development and what constraints or opportunities certain landscape features will bring you.
- Design considerations (Massing plans and layout)
Design considerations with massing plans and layout are often a part of the development potential analysis. A skilled professional will present several options for development opportunities where you can choose which development type suits your needs.
Each design layout will consider maximum land usage based on its zone. Sometimes, a residential property can also be developed commercially, and of course, you’ll find a plan for that when you’re working with experts.
From a residential zone standpoint, layout diagrams often consider subdivisions, dual occupancy layouts, frontage, setbacks, and everything you can practically include in the design stage.
- Consultation for the next steps
After all that dynamic information and planning, you wouldn’t want to be left hanging with your ideas.
An exceptional property development feasibility study example is set when you’re shown the next steps you must take and the right to choose how you wish to proceed with your project without overbearing costs and additional planning.
How SQM Architects help make your development profitable
Property development feasibility studies are an evolutionary process.
Many factors in property developers need to be updated every time other variables are added. Amidst all, the most important thing to remember is to learn from the numbers given to you. And that’s exactly what makes SQM Architects different.
Our experts closely consult you throughout this evolutionary process with the best of your interests in mind. We craft a feasibility study that will stay helpful in the lifetime of your development project.
Our reports are designed to help you increase your business profits and open new doors for additional financing, approvals, and support during your property development project.
From telling you more about your site’s feasibility to showing you how you can make the project a success – SQM Architects are known to be the industry-leading experts in Victoria for our tailored services because no piece of land is ever the same, and neither are your development needs!
For related information, you may also find these resources helpful: property development feasibility study, investment property development, and how to find development sites.
Frequently Asked Questions
What should building feasibility reports typically include?
A thorough building feasibility report generally includes a site analysis, regulatory analysis covering zoning and planning permit requirements, constraints and limitations assessment, development potential analysis with massing plans, design recommendations, and a project cost estimate. The depth of each section may vary depending on the complexity of the site and the proposed development.
How much does a feasibility study typically cost in Victoria?
The cost of a feasibility study in Victoria can vary depending on the complexity of the site and the scope of the assessment. For a standard residential development site, costs may generally range from a few thousand dollars for a basic assessment to more for comprehensive reports with detailed massing plans and financial modelling. It is worth discussing your specific needs with your architect to get an accurate estimate.
When is the right time to commission a feasibility study?
Ideally, a feasibility study should be commissioned before you purchase a development site or at the very early stages of considering a property development project. Having this information upfront can help you make more informed decisions about whether to proceed, what type of development could be viable, and what budget to plan for.
What are common mistakes to avoid in a property development feasibility study?
Common pitfalls may include underestimating construction costs, overlooking planning overlays and council-specific requirements, failing to account for consultant and permit fees, not considering the neighbourhood character, and relying on overly optimistic revenue projections. Working with experienced professionals who understand Victorian planning regulations can help reduce these risks.
What return on investment benchmarks should I look for in a feasibility study?
Return on investment benchmarks can vary widely depending on the type of development, location, and market conditions. In Victoria, many developers generally aim for a development margin of around 15-20% on total development costs, though this can differ based on the project’s risk profile. It is important to discuss realistic benchmarks with your architect and financial advisors based on current market conditions.
Need Professional Guidance?
If you’re planning a property development in Victoria, understanding your site’s feasibility is an important first step. Contact SQM Architects to discuss how we can assist with a comprehensive feasibility study tailored to your development goals.
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