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Old 13-02-2020, 02:04 PM   #170
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Join Date: Dec 2008
Posts: 4,109
They really no choice if they want to make a profit.
Have to let buyers bail them out of the high costs paid.

The problem with EC scheme is that it is based on land bidding by developers, unlike HDBs. It makes sense that eventually, EC pricing will gravitate towards PC prices, such that eventually EC scheme "fails".

And developers with multiple launches will usually also price each new launch higher and higher so that previous launches appear cheaper and move. Excellent pricing strategy in a capitalist economy.

One also has to consider resale levy. For a 5 rm flat owner, it is $45k. So for 1000 sqft unit, it is additional $45k. This will push up the pricing to $1125~ $1195 psf.

I also did a quick calculation for the Ola PH unit of 1722 sqft. At $1080 psf, along with resale levy, it would be $1.9 mil.

Comparatively, at Parc Botannia, a 1507 sqft unit just went for $1137 psf in Jan 2020 at about $1.7 mil.

The quantum seems too high for a development that imposes an income ceiling of $16,000. A couple can get a max loan of about 1mil to 1.2mil and have to come up with the rest thru selling existing place n cash, how many can do it?

That being said, not like got a lot of penthouse on offer here lol

And you are right about Parc Botannia, no resale levy and if I not wrong you also get the private lift lobby
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