The Garden Residences Price – Land Price By Keppel Land & Wing Tai Holdings

Land Parcel LocationTender Launch Date/ Close DateSite Area (sqm)/ Max *GFA (sqm)Tenderer’s NameHighest Bid ($)$PSM of GFA
SERANGOON NORTH AVENUE 130 MAY 2017/ 27 JULY 201717,189.1 m2 / 42,973 m2Corson Pte. Ltd. and Wingjoy Investment Pte. Ltd.$446,280,000$10,385.13
The Garden Residences price, The Garden Residences selling price, The Garden Residences launch price

The Garden Residences Condo Price – Developers Bid

RANKINGNAME OF TENDERERTENDERED SALE PRICE ($)TENDERED SALE PRICE IN $PSM OF GFA
1Corson Pte. Ltd. and Wingjoy Investment Pte. Ltd.446,280,000.0010,385.13
2FCL Residences Pte. Ltd.418,700,000.009,743.33
3Singland Homes Pte. Ltd. and UOL Venture Investments Pte. Ltd.417,200,000.009,708.42
4Cityzens Development Pte. Ltd.416,888,888.009,701.18
5CSC Land Group (Singapore) Pte. Ltd.401,999,999.009,354.71
6GLL A Pte. Ltd.393,260,000.009,151.33
7Citrine Property Pte. Ltd393,177,000.009,149.40
8Hoi Hup Realty Pte Ltd and Sunway Developments Pte Ltd381,800,000.008,884.65
9OUE Arbon Pte. Ltd. and Qingjian Realty (Woodleigh) Pte. Ltd.378,900,000.008,817.16
10Allgreen Properties Limited361,008,000.008,400.81
11Kingsford Huray Development Pte Ltd361,000,000.08,400.62
12CEL Development Pte. Ltd. and RP Ventures Pte. Ltd.357,700,700.008,323.85
13Sing Development (Private) Limited and Wee Hur Development Pte. Ltd.357,100,000.008,309.87
14Greatview Investment Pte Ltd353,900,000.008,235.40
15Sim Lian Land Pte Ltd345,000,000.008,028.30
16EL Development Pte Ltd338,000,000.007,865.40
The Garden Residences list of developer tender bid price

The Garden Residences Price – Nearby Condo Prices

Condos Around District 19, Serangoon North Ave 1Average PSF For The Past 6 Months TransactedIndicative Rental Yield
Hilbre 28S$1,412.4 (last 1 year)3.8%
Kensington Park$999.102.70%
One Rosyth$924.004.0%
3 @ Phillips$825.70NA
D’hiro @ Hillside$ 1,317 IN OCT 2012NA
The Garden Residences nearby condo price, nearby rental yield

The Garden Residences Condo Price – Estimated Launch and Guide Price

According to Todayonline, Mr Mak has mentioned that the top bid of The Garden Residences, may have to launch the units at above S$1,600 psf. https://www.todayonline.com/business/serangoon-north-housing-site-gets-buillish-top-bid-s4463-million

$psf
Land cost$835
Construction cost$350
Expenses and profit margin$356
Estimated launch price$1541
The Garden Residences Estimated launch price

More Read Up About How Developers priced their launch?

The Garden Residences Interest Registration

In the building and development sector, developers are always trying their level best to get the right combination of a product that holds value to customers and sells at a good profit for the shareholders. Here we will  show you how to get a rough number of their prices.

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Breaking down the components in terms of cost, the most expensive of all is the land and that is followed by construction costs. In terms of accounting, this is similar to Cost of Goods Sold (COGS). If one were to add the administrative costs, sales and marketing expenses, finance costs and the profits to the above mentioned expenses, a final price would be determined.

For example:

In June 2015 the developer was awarded this site for S$345.86 million which values each square foot at S$755 as per Gross Floor Area (GFA). A mass market condominium holds a total of S$350 as construction costs per square foot (psf). Adding both of them gives the total base cost. 30% of the base cost will cover the developers’ other expenses and other costs. These total around S$331 and include:

  • Administrative expenses: Staff costs, office rents etc
  • Sales and marketing expenses: Showflat building costs, commission for real estate agencies, advertising for the development, lawyer fees for conveyance etc.
  • Finance costs: this is the interest which is paid to the financing institutions for their services.
  • Profit margins: This the profit the developer hopes to make

These estimates work best in an area where there is low volatility in terms of prices. However, developers can increase their profits. This can happen in the case that property prices increased between tender award and project launch date. The developers’ profit margins can decrease too, if by some reason the price of property were to decrease. In a competitive market, developers can conduct market surveys and price their property accordingly. The prices after a survey are usually in fierce competition with rivals so that developers may sell their units.

Our estimates of $350 may not be accurate. Luxury condos may cost up to $450 and ultra-luxury condos are typically even more expensive.

If by some chance the actual price is lower than what we calculated, does it mean that we are getting better value?  The methods discussed in this article are not meant to be used as a method to try and determine the exact value of property. It is used better as an indicator to manage budgeting. A good decision when buying property like The Garden Residences should be made by the developer’s past record, the architects and contractor are all taken into account and not just the price is considered.