When you look at today’s successful land bid prices for Ang Mo Kio and the EC, you be shocked that the EC crossed $600 for the first time and AMK with 15 bids exceeded $1100 dollars.
This only implies :
1) Property Prices will remain resilient and future prices are expected to be higher.
2)Developers who lose out in the land bids and don’t have much balance stock well start increasing their existing unsold units.
3)Even EC, prices will now cross $1200 psf.
What does this mean to future buyers?
With rising construction cost in place and higher land cost, we can only expect Developer to price the future private residential homes at higher price.
Typically, the construction cost and all miscellaneous cost from Developer adds up another $600psf – $800psf to break even.
In the case of the successful land bid for Government Land Sales (GLS) at Ang Mo Kio Avenue 1, for the Developer to earn a healthy profit of 10-15%, , the Developer would have to sell at least $1920psf.
Now, both the successful land bids at Tengah and Ang Mo Kio signified a new high for Outside Core Region (OCR) projects.
So what would you be expecting from the existing EC & Private condo Developers with balance units? Will they offer discount or increase price, knowing that many developers are facing limited land bank?
Will transactions on resale property market go up too?
Connect with me today to find out how you can adjust your position.