What costs go into an affordable 3 bedroom home in Auckland
This video walks through the numbers on one real infill site: four three-bedroom houses built on a $600,000 section in an established Auckland suburb.
Sale price $700,000. GST takes $91,000 off the top. Land is $130,000 a house. Construction is $300,000. Design, consent and compliance costs $30,000. Civils and the hookups cost $30,000. Development contributions come to $50,000, well above the $20,000 that is often quoted. Watercare, Vector and Veolia’s growth charges add a further $39,000. The street level infrastructure work adds roughly $30,000 more.
None of that includes profit, project management, quantity surveying, bank finance or contingency. Add a year of finance and the bank’s 15 per cent margin requirement, and the same house needs to sell for $850,000, not $700,000.
