RV Altitude CONDO PRICE – ACQUIRED PRICE BY ROXY PACIFIC
| LAND LOCATION | SUCCESSFUL ACQUIRED PRICE | PER SQ FT PER PLOT RATIO | GROSS PLOT RATIO |
|---|---|---|---|
| River Valley Road | $110 million | $1,582 psf ppr | 2.8 |
RV Altitude CONDO PRICE – NEARBY CONDO PRICES
| NEARBY FREEHOLD CONDOS AROUND RV Altitude | AVERAGE SELLING PRICE (PSF) FOR PAST 12 MONTHS | IMPLIED RENTAL YIELD |
|---|---|---|
| NEW FUTURA | $3,258 | N.A |
| DEVONSHIRE RESIDENCES | $2,357 | 2.9% |
| STARLIGHT SUITES | $1,948 | 3.0% |
| THE BOUTIQ | $2,121 | 2.8% |
| KILLINEY 118 | $1,910 | 3.1% |
| ESPADA | $2,353 | 3.3% |
| CENTENNIA SUITES | $2,429 | 2.0% |
RV Altitude CONDO PRICE – ESTIMATED LAUNCH AND GUIDE PRICE
- “At a land price of $1,582 psf ppr, we estimate the breakeven price of this project could be as high as ~$2,200 psf ppr, and selling price could fetch circa $2,500v psf,” says analyst Tata Goeyardi. According to Edge.
| $psf | |
| Land cost | $1,582 |
| Construction cost | $350 |
| Expenses and profit margin | $580 |
| Estimated launch price | $2511 approx |
A simple explanation/formulae on how developers priced their launch (subject to changes)
Land is considered the most expensive component, followed by the construction cost. The prices we are about to share are just the estimates which may vary as they are dependent on the market rates.
A case study
For example, a land that cost up to $755 per square foot (psf), followed by the construction cost which is $350 psf for a mass market condominium.
The remaining 30% of the base cost will be the other expenses and profit of the developer which includes Administrative expense like Staff cost, Office rents etc. Sales and marketing covers most of this portion because of the Show flat Building cost, Lawyer fees, Commission for Real Estate Agencies and Advertising etc. Finance paid to the finance institutions for financing the development and the percentage of profit given to the developer for development completes this important expense portion.
The estimate given above will work well in the current low price environment. Obviously the market is not constant, so if the Land prices are increased during the period between tender awards and launch date, the developers can revise the price taking in more profits. The developers will analyze their competitive market and set their price accordingly to sell their units.
