Parc Esta Condo Price – En-Bloc Price By MCL Land Limited
|LAND LOCATION||SUCCESSFUL SALE PRICE||PSF PER PLOT RATIO||GROSS PLOT RATIO|
|Sims Avenue ( Former EunosVille)||S$765,780,000||S$909||2.8|
Parc Esta Condo Price – Nearby Condo Prices
|CONDOS AROUND PARC ESTA||AVERAGE PSF TRANSACTED (12 Months)||IMPLIED RENTAL YIELD|
|GARDEN PARK RESIDENCES||$1,326||2.7%|
Parc Esta Condo – Estimated Launch Price
Are you planning to buy a new condo like Parc Esta? Some extra read ons and discover some of the key factors which may play a role in determining the price at which the new condominiums will be offered on the launch date.
Cost of Land
The biggest item which determines the new condo price on the launch date is the price at which the land was acquired for the development. This cost of land is spread out across the size of the development so that the cost per square foot (psf) is established. This means that a piece of land with fewer condos may have a higher land psf than another similarly sized piece of land with more condos built on it. Find out what the cost of land is in the area where the condo development is located so that you can start estimating the likely launch price.
The cost of constructing the condos also influences the price at which those condos will be sold on the launch date. Construction companies have become so efficient that their construction costs for each square foot of a building don’t vary so much. Do your homework and establish what the average cost of building a condo is in the area of interest. Add this psf cost to the cost of land as discussed earlier.
Developer Expenses and Profit
The cost of land and the cost of building the condominium will give you the base cost of the project. Add a fraction (30%) of that base cost in order to cover the additional expenses (conveyance fees and financing costs, for example) incurred during the land development. That fraction of the base cost also covers the profit margin of the developer. Compute the total of the base cost and the extra 30% in order to arrive at an estimate of the likely new condo price on the launch date.
Other Factors Which May Affect that Launch Price
- Current Trend of Land Prices. Land developments usually take several years to be completed. In that time, the cost of land in that area can increase or decrease. Such trends can have an impact on the price at which condos will be sold upon their launch. For example, decreasing costs of land can compel the developer to reduce his or her profit margin in order to sell the condos in such a depreciating market. Rising land prices have the reverse effect (enabling the developer to earn higher profits).
- Costs of Other Properties. The current price of other condos in that area also exerts pressures on the cost of the new condos being brought on the market. Condominiums built in an area where other condos are selling at a premium will be priced higher despite the fixed costs (land, construction and expenses/profit) pointing to a different launch price. It is therefore wise for you to research the prevailing condo prices in that area so that you revise your estimate accordingly.
- Developer-Specific Factors. Some developers have a stellar reputation that can give them leeway to set higher launch prices for their condos. Other developers can also be more efficient in their operations when compared to industry averages. Such developers can offer more competitive prices without sacrificing their profit margins. Know the specific developer who is going to launch new condos and account for his or her specific impact on the likely price.
As you can see, many factors often come into play when new condo prices are being set. Take your time and gather as much information as you can about a given project so that you come up with a realistic estimate of what each property is likely to cost in your target