Where are my development costs going?
The process of preparing a plot of land for housing development requires a wide range of engineering fees, roads and utilities.
Streets and sidewalks are required which must have curbs and gutters where surface water drains away, and are built to a standard that will last. Material specifications for water and sewage lines call for the highest quality.
Often a major development cost is for offsite work, such as bringing sewer and water to the subdivision from some distance or accommodating for surface water drainage. Sometimes a developer may be required to size a water or sewer line to include future developments in the area. The cost of running sewer lines are approximately $1 million dollars per kilometre, and that is just to the property.
After bringing utilities such as gas lines and electricity power lines to the edge of a subdivision, they must be disseminated throughout.
Other costs include the clearing of bush land, shrubbery, grass and trees.
Below are images of current development works being carried out within the Sydney Growth Region to demonstrate where development costs are attributed to.