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The foreign factor in higher land prices

The foreign factor in higher land prices

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Mr Sim described the current bidding situation as "boxers from different weight classes coming into the same ring". He noted that the tough competition had already caused some local developers to "bulk up their bids", such as Chip Eng Seng's recent win of the Woodleigh Lane site. It paid $700.7 million for the site, 16.2 per cent above the median bid, edging out bids from a joint venture between units of Keppel Land and Wing Tai, as well as Verwood Holdings and Logan Property. One outcome of the increased competition is likely to be lower developers' profits. Developers declined to reveal profit margins, stating that they were looking for double digits, but a check on properties in the Tanah Merah/Bedok area showed that higher land prices are likely to have caused developers' profit margins to come down over time. A consortium including Far East Organization purchased the site for eCo condominium in Bedok South Avenue 3 for $534 psf in February 2012, but sold at $1,300psf at its launch in late 2012, posting a 58.9 per cent difference between the land price and the sale price. A later project in the area like Urban Vista posted a 49.9 per cent price differential when it was launched in early 2013. Fragrance Group and World Class Land paid $676 psf for the land and launched it at $1,350 psf. Likewise, The Glades recorded a 47.2 per cent price differential when it launched in September 2013, as it paid $791 psf for the land and launched at $1,500 psf. In comparison, a Chip Eng Seng unit paid $760 psf for the land parcel of[URL=" https://sg-property.sg/properties/grandeur-park-residences/"] Grandeur Park Residences at tanah merah [/URL] in February last year , and launched at $1,350 psf this year, posting a price differential of just 43 per cent. More info [URL=" https://sg-property.sg/properties/grandeur-park-residences/"] click here [/URL] or [URL=" https://sg-property.sg/"] sg-property.sg [/URL]

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