Types of Redevelopment Cost

cost-estimation

Budgeting is always a key concern on any homeowners’ mind, especially when it comes to big projects like redevelopments, which are slightly different from your typical renovations of HDBs and condominiums. A redevelopment project invovles major structural changes to your property, such as a wing extension to your bungalow or major overhauls on a multi-unit estate. The team of exprts at Trace Design | Build have broken down the key cost drivers of redevelopment for your reference.

 

  1. Land Price

Land is usually recognized by its historical cost, or the cost paid to purchase the land, along with any other related initial costs spent to put the land into use. The most common factors that affect the cost of land include accessibility/location of the land and market demands.

Other factors affecting land price:

  • Government Land Sales + Private Treaty Sale
  • Condition of the current land.
  • Amenities around the land.
  • Potential of the land (e.g Plot Ratio, Zoning)
  1. Consultant Fees

Consultant fees are mainly the professional fees paid to the building professionals. As mentioned earlier, redevelopment is slightly different from the typical renovation because redevelopment requires a small team of building professionals to make sure your property is structurally sound with a proper drainage/sewerage system.

Building Professionals involved in redevelopment project:

  • Architect
  • Civil + Structural Engineer
  • Mechanical + Electrical Engineer
  • Quantity Surveyor
  • Land Surveyor
  • Soil Investigation Surveyor
  • Valuer
  • Registered Inspector (RI)
  1. Government Fees

It is a mandatory requirement for consultants to submit their proposal to the relevant authorities for their approval for the building works which will incur additional cost. Certain authorities also require consultants to purchase various information plans which include information on sewerage/drainage pipe systems.

  • Authority Submission Fees
  • Purchase of Information (Service Plans etc)
    • SIP
    • DIP
    • RLP
  1. Construction Fees

Construction fees consist of material, labour, levy, taxation fees which are affected by various factors such as inflation, availability of the materials, and local legislation on the levy on imported workers. For example, in 2007, Indonesia bans land sands exports to Singapore which caused a shortage of sand in the construction industries. Therefore, the price of sand increased rapidly and thus, the cost of construction increases.

  • Structural Works
  • Building Works
  • Mechanical + Electrical Works
  • Utilities (PUB, SP Powergrid etc)
  • Resident Technical Officer (RTO)
  • Pre-Con Survey
  1. Financial Cost
  • Financial costs are related to bank interest, legal fees, property agent commissions, etc.
  • Bank Interest (On New Land + Old Home + Construction Loan)
  • Legal Fees
  • Valuation Cost
  • Property Agent Commission

Trace Group of Companies:
Trace Design + Build Pte Ltd
Trace Projects Pte Ltd
Trace Development Pte Ltd

62 Ubi Road 1
#07-20/21 Oxley Bizhub 2
Singapore 408734
Telephone No : (65) 6443 9988
Fax No : (65) 6443 9945
Email : trace8899@gmail.com

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