How do you calculate the break even cost for land in Singapore?

To calculate the break even cost for land in Singapore property development, you sum up several key components:

- Land cost: The price paid for the land parcel, usually expressed per square foot per plot ratio (psf ppr).
- Construction cost: The estimated expenses for building works, including materials, labour, and fees.
- Land financing cost: Interest and other financing charges incurred during acquisition and construction.
- Other costs: Additional expenses such as marketing, legal fees, development charges, and government levies.

The break even cost per square foot is derived by adding these components together and dividing by the total saleable area of the project. This value helps developers determine the minimum price at which units should be sold to avoid losses.