Premium apartments require a unique approach in design.
Premium apartments are an active segment of the property market now. The premium segment of the market requires a finely crafted approach to all aspects of design. So how do you design the best possible premium product?
Remember, “design” is not limited to architectural aesthetics. Design thinking needs to encompass the on-going management of your product once it is finished. The service and experience provided to your buyers is very much a feature which will set your development apart in a crowded market, and the expectations of premium buyers does differ to other segments of the market.
SSKB has a process which will apply design thinking to your premium project. No two buildings are the same, and application of a cookie cutter approach to management systems will not differentiate your product in the market-place. Below is a hypothetical example of the discovery which we will take you through in the design process.
You have just developed a 15 story 35 lot high-rise on the waterfront, a purchaser has acquired the penthouse for $4.5m. What is this purchaser expecting from their Body Corporate expenses?
Rooftop facilities? Mobile access to the BMS systems to control their apartment? Priority lift system? Wine storage? Steam room? 25m lap pool? Gym? Spotless common area? Concierge? Someone they can call when something isn’t right, 24 hours a day? Absolutely.
All reasonable expectations from the purchaser of a premium penthouse. Question is, what is the on-going cost to the purchaser for these amenities and how are you, the developer, going to achieve a marketable $/per week levy amount? Will purchasers be prepared to sustain the on-going expenditure over many years?
What is a ‘marketable’ amount?
- There can be a disconnect between what a purchaser wants, and what they are prepared to pay for. Value for money is a key, as is transparency in procurement. Transparency can cure many grumbles.
- The fees for the services will always vary depending on the size of the building, and the ability to access economies of scale: more lots = further spread of costs.
Marketability vs Purchaser Satisfaction
- Yes, each lot in a premium product needs to be marketable. No point developing something that will not sell. But what bares heavier impact, the marketability, or the on-going satisfaction of your purchaser?
- We have discussed what’s marketable. Now, what will keep the purchaser satisfied, and what will drive them to invest in your next product offering.
- The product is going to be the hero, the amenities its sidekick.
Concierge v Caretaking Agreement v Facilities Management
- Concierge services, caretaking, on site letting, and professional facilities management are all different but overlapping disciplines. How do you blend these professions together in an economical manner to deliver the right mix of service to your project?
- Many developers have the management rights as an asset for sale, which is an important part of the yield in the development. Is this the right approach? How do you the developer, utilize this to satisfy the expectations of the purchasers?
- Do you sell to an experienced manager? If you sell to an experienced operator how do you ensure their continued involvement in the project?
- Building systems are becoming more complex. A professional facilities manager brings much needed technical expertise, and can deliver long term benefits and costs savings.
- Concierge is a trend. However, it has legal limits under Body Corporate legislation. There is also the question of ensuring users pay. Nobody likes being required to make regular contributions but not using the feature.
- Do you hold the management rights as an asset and employ a contractor to act as the Facilities Manager?
- What is the best product offering?
- What will your penthouse owner expect?
SSKB is ideally placed to work with you during the design process. It is never too early to have a discussion about the trends in building administration and on-site management, and how to craft a vision for your project. Contact Bradley Jones or Oliver McCall from our expert development consulting team to discuss your project further.
0411 352 409