The Process – ‘Massing’ Studies to Support your Project
Hi team, back again with the next chapter of the Urbizen saga!
As we move past the site-searching stage, the next step in our process was to look at undertaking a massing study.
By this point you should have a feasibility template ready with all the key line items identified.
In this post I’ll speak to the value of undertaking a ‘Bulk and Mass’ study to identify the right project type for your site and the market you’re selling to. This stage was really important for us as our project was to be a design-led project so required detailed analysis of massing options to ensure our chosen concept followed certain design principles we wanted to achieve for our buyer market. We identified quickly that in order for our project to be successful it needed to be a design-led project that offered a point of difference to the market.
Once our site was secured under a due diligence offer, we undertook what the industry calls a ‘Bulk and Mass’ Study. (Also known as a ‘Massing’ or ‘Bulk & Location’ Study)
Bulk and mass studies are typically undertaken by Designers or Architects in tandem with Town Planners. They can be especially useful in ascertaining the scale of project you want to achieve, total net saleable area you need to target to establish your margin, and the type of development you can achieve in accordance with relevant planning standards and your objectives. Often multiple options are explored (in our case, a total of five options were explored) to determine the best outcome for the site based on the market and your core objectives.
(Key Learning: Ensure you undertake multiple massing study options for your site to determine the best development outcome. The Unitary Plan standards allow for a mix of densities and typologies in most zones, so assessing all options is valuable (subject to your risk appetite).)
As a part of this process, the Designer will prepare a three-dimensional massing study of the site and explore all practical options; be it stand-alone housing, duplex housing, terraced housing, apartments, or a combination of the above.
At a minimum, the massing study should include the following parameters:
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Total Gross Floor Area (GFA) for the development (including circulation space and decks);
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Total Net Saleable Area (NSA) for the development (I.e. the internal area of the development that can be sold);
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Typology of units (one, two, three-bedroom etc.);
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Indicative layout of development including location of parking spaces, permeable landscaping etc.
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All relevant massing planning requirements including Height in Relation to Boundary (HIRB), maximum height, and coverages (landscape, impervious and building)
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Location of any services (water, wastewater, stormwater)
(Key Learning: Ensure the study identifies the location of infrastructure. If, for example, a wastewater pipe passes through your site then this could impact the cost of the development as this pipe may need to be either relocated or bridged over depending on the location so it’s important to include in your massing study.)<
Why is a massing study important?
In theory, the above information you obtain from your massing study should correlate to your feasibility study that was discussed in my second post (Urbizen Journey – Trust your gut, but make sure you know what you’re eating).
For example, Gross Floor Area (GFA) components of a development are important to factor in as they have a cost associated with construction but do not have a value attributed to them. Some good examples are circulation spaces like breezeways and stairs required to obtain access to the units. You must factor these in when using square meter rate to build, but these are not included when calculating the saleable square meter rate for the project.
The Net Saleable Area (NSA) is important because it is the total area that allows you to determine the overall Gross Development Value (GDV) of your project. For example, if your NSA is 1,000m2 and the sales data you research indicates an average sales rate in your location of $9,000/m2 (inclusive of GST) then your total GDV for your project will be $9,000,000 (inclusive of GST).
Planning requirements are equally important because they confirm whether your massing study complies with the core standards of the relevant planning regulations, in our case the Auckland Unitary Plan. This is critical because any infringement to the requirements under your chosen massing study adds planning/resource consent risk to the project.
(Key Learning: The massing study data should you obtain should be able to transfer to the key line items in your development study and should accurately record the planning requirements in your area. Ensure the Designer understands the requirements and, if in doubt, ask a local town planner to check that the study is accurate.)
Understanding your typologies is also important, as the mix of units (including their size etc.) should correlate to your development objectives and target market you are aiming to sell to. For example, think about whether you want a mix of one and two-bedroom units in your project and include these in the options you explore.
(Key Learning: Try not to get too caught up in determining exact typologies as these often move around a bit as you move into concept, consenting and design stages. Equally, the designer should ensure the typologies they are proposing at a massing level meet minimum unit dimensions and internal layout standards required by the planning regulations and meet your target market.)
With regard to massing study prices, these should typically cost in the range of $2,500 to $5,000 per study depending on the complexities of the project.
As demonstrated above, undertaking an accurate and comprehensive massing study in the initial stages of your project is critical to its success. A massing study can help unlock a range of information for your feasibility that will help you assess the risk and viability of the project and inform your decision making going forward. Without this information, you run the risk of walking blind into a purchase and design stages.
I hope you found this article informative, or interesting at the very least. As always, I’m happy to answer any questions about this experience. The next post in this series will address the purchasing and lending requirements of the development journey!
