Step 1: the land price
| Plot 1 | Plot 2 | Combined | |
|---|---|---|---|
| Winning bid | $703.6M | $623.9M | $1,327.5M |
| Land rate (psf ppr) | $1,376 | $1,331 | ~$1,354 |
| Gross floor area | ~511,000 sqft (implied) | 468,693 sqft (URA max) | ~980,000 sqft |
“psf ppr” means per square foot of permissible gross floor area, the total floor space the developer may build. Dividing each bid by its rate gives about 980,000 sqft of GFA across the combined site.
Step 2: estimated development costs
This table uses typical industry cost ranges for a 2026 suburban project with basement parking. It is an estimate for illustration only.
| Cost item | Est. psf of saleable area |
|---|---|
| Land (incl. in the bid) | $1,354 |
| Construction (incl. basement, M&E, finishes) | $550 – $650 |
| Financing & holding costs (~4–5 years) | $130 – $160 |
| Marketing, showflat & agency commissions | $80 – $100 |
| Land stamp duty & legal | $60 – $70 |
| Consultants, design & authority fees | $60 – $70 |
| Contingency | ~$60 |
| Estimated break-even | ~$2,300 – $2,450 |
Step 3: from break-even to launch price
Developers typically target a 10 – 20% margin on large suburban projects. Applied to our break-even range, that gives:
| Margin | Implied average psf |
|---|---|
| 10% | ~$2,530 – $2,700 |
| 15% | ~$2,650 – $2,820 |
| 20% | ~$2,760 – $2,940 |
This overlaps well with the market reference: Chuan Park’s latest median of about $2,699 psf. That is why this site uses an indicative band of $2,700 – $3,000 psf.
What this means for buyers
- Deep discounts are unlikely. With break-even around $2,300 – $2,450 psf, the developer has little room to price far below Chuan Park.
- Early phases usually carry the base price. Developers tend to release batches and raise prices as sales progress. Chuan Park’s median rose about 4–5% after launch.
- Compare on quantum, not just psf. Smaller units carry higher psf. Look at total price against your budget with the affordability calculator.