To determine the break-even price per square foot per plot ratio (PSF PPR) for properties, consider the following factors:
- **Land Cost**: Total cost of acquiring the land.
- **Construction Costs**: Typically $300 to $500 per square foot.
- **Other Development Costs**: Professional fees, marketing, financing, etc.
- **Gross Floor Area (GFA)**: Site area multiplied by plot ratio.
**Break-Even Calculation**:
1. Total Costs = Land Cost + Construction Costs + Other Development Costs
2. Break-Even Price PSF PPR = Total Costs / GFA
Example:
- Land Cost: $100 million
- Construction Costs: $500 per sq ft for 100,000 sq ft
- Other Costs: $20 million
- Total Costs: $170 million
- GFA: 100,000 sq ft
- Break-Even Price PSF PPR: $1,700
For specific sites like Duke Road, if the total costs were around $1.787 billion and the GFA was 1 million sq ft, the break-even price would be around $1,787 PSF PPR.