What is the breakeven cost for The Orie?

Land Cost

The cost at which the developer acquired the land, typically through a Government Land Sales (GLS) tender or an en-bloc sale.

Construction Costs

This includes the costs of building materials, labor, and other construction expenses. In Singapore, construction costs for condos generally range from $300 to $400 per square foot, although this can vary depending on the luxury level of the development.

Other Costs

• Financing costs: Interest on loans taken to develop the property.
• Sales and marketing expenses: Costs associated with selling the units.
• Regulatory and administrative costs: Including development charges, stamp duties, and other fees.
• Profit margin: Developers typically aim for a profit margin of 20% to 30%.

Calculation Example

If the land cost is $1,000 per square foot (psf) and the construction cost is $350 psf, the total cost would be $1,350 psf. Adding sales and marketing expenses, let's assume an additional 10% to 13% of the total cost, which would bring the break-even price to around $1,485 to $1,521 psf. However, developers also need to make a profit, so they would typically add another 20% to 30% to this figure.

Break-Even Price

For The Orie, if we assume similar costs, the break-even price could be estimated as follows:

• Land and construction costs: Around $1,350 psf
• Sales and marketing expenses: Around $1,485 to $1,521 psf
• Adding a 20% to 30% profit margin: The final break-even price would be approximately $1,782 to $1,974 psf.