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radha08
05-11-12, 18:07
Just curious to know generally in todays market for a mass market new launch how many % of the development must the developer sell before they break even...:confused:....most of the launches seem to be doing very well even the bigger ones like riversails...pallette...

So if say developer needs only to sell 70% to break even then the rest is profit....which seems to be easily achievable today then the ball is going to keep on rolling and rolling....govt sell land developer build...people buy...how is it going to stop...:confused:

I know thats why the govt come out new CMs but this whole property thing seems like a vicious cycle...:rolleyes:

Just like trying to stop people from eating sharks fin soup....but if the eating doesnt stop the killing wont...poor sharks...:rolleyes:
carbuncle
05-11-12, 18:16
Theres no hard n fast rule, varies by project depending on the margin.

I have heard of 50% before for certain projects.
radha08
05-11-12, 18:22
Theres no hard n fast rule, varies by project depending on the margin.

I have heard of 50% before for certain projects.

wow thats very good profit margin....:rolleyes:
radha08
05-11-12, 18:31
so for eco...540/748...would they have broken even...just curious...:confused:

i suppose they have already secured the price of construction etc etc with the building companies....sounds like an interesting business this property devt thingy...you start with a piece of bare land and your end product is a nice building...:)
chestnut
05-11-12, 18:37
Land price was 540 psf ppr. They add about 400 for construction. So total about 940 psf break even.

http://www.propertyguru.com.sg/property-management-news/2012/2/32336/ura-awards-bedok-south-ave-3-tender-for-s-345-9m

So you look at their sell price, will give u an estimate of profit. Then u calculate.
carbuncle
05-11-12, 18:40
so for eco...540/748...would they have broken even...just curious...:confused:

i suppose they have already secured the price of construction etc etc with the building companies....sounds like an interesting business this property devt thingy...you start with a piece of bare land and your end product is a nice building...:)

Small time developer can buy small plot to start off. But more difficult now with MMCM.
chestnut
05-11-12, 18:43
Small time developer can buy small plot to start off. But more difficult now with MMCM.

Entry barrier is raised. Those were the days.