DBSS developers make 76% margin on Tampenis Centrale 8.. HUAT AHHH!!

[Rogue Trader]

Singaporeans lose while DBSS project developers win big
Shin Min Daily News - 1 hr 4 mins ago

The Tampines Central 8 project has a gross profit margin of 75.8%, which is double the usual margin. (Pic / File Photo)

According to a report in The Business Times, the highly controversial DBSS project, Centrale 8 at Tampines, has a gross profit margin of 75.8% and stands to make more than $171 mil for its developers.

Private real estate projects usually have a profit margin of 30% to 40%.

This is not the first housing project that has made its developers big money - at the loss of Singaporeans searching for affordable housing. The project that made the most money for developers so far is “The Peak” in Toa Payoh. It generated $256 mil for the developers.

Meanwhile, a recent survey by iProperty.com.sg has revealed that nearly 50% of its 315 respondents hope that the housing ministry will build more affordable homes.

Current home prices are still at an all-time high despite recent cooling measures by the government. Cash over valuation (COV) has also just seen a 50% increase, amid growing hopes for Housing Minister Khaw Boon Wan to do more to help Singaporeans own affordable homes.

Reiterating a point made recently by Marine Parade GRC MP Tin Pei Ling, should the government be releasing precious land for private developers to make massive profits from Singaporeans? Or should the HDB be using the land to build more affordable housing for Singaporeans?

Source: Shin Min Daily News, 30 June 2011. Click here for the Chinese report.

 

[borom]

......Private real estate projects usually have a profit margin of 30% to 40%......This is not the first housing project that has made its developers big money - at the loss of Singaporeans searching for affordable housing. ......precious land for private developers to make massive profits from Singaporeans? Or should the HDB be using the land to build more affordable housing for Singaporeans?.......

So even if HDB gives a discount of up to 30% from market price, they still make money.
How come HDB under present MP Mah Bow Tan report "losses"?
THis is something that I hope the WP will look into in Parliament now that GMS is temporarily retiring from politics.

How can a man who say building cheap public housing for locals is akin to robbing the reserves (while developers are making obscene profits from the same piece of public land) be even elected as an MP.
That is why it is important to elect a people centric President to make sure our reserves (including public land) is used to benefit the people and not some greedy developers/business conglomerate.

Do you think TT will side the business community or care for the man in the street?

 

[Goh Meng Seng]

Don't get too excited about this report. There is one critical data error that the BT reporter puts up; apparently the data on the land cost to the developer was mixed up.

The following is the BT data:

But check out the HDB data on land sales:

http://www.hdb.gov.sg/fi10/fi10297p.nsf/ImageView/SITES_SOLD_-_RESIDENTIAL_DBSS/$file/DBSSMaster+development+(3+Jun+2011).pdf

Goh Meng Seng

 

[garlic]

Don't get too excited about this report. There is one critical data error that the BT reporter puts up; apparently the data on the land cost to the developer was mixed up.

The following is the BT data:

But check out the HDB data on land sales:

http://www.hdb.gov.sg/fi10/fi10297p.nsf/ImageView/SITES_SOLD_-_RESIDENTIAL_DBSS/$file/DBSSMaster+development+(3+Jun+2011).pdf

Goh Meng Seng

Correct lei, pg 15 of the pdf u attached..

 

[potato29]

Correct lei, pg 15 of the pdf u attached..

pg 15 refers to Tampines PH1 The Premiere@ Tampines.
Tampines PH2 Centrale 8 @Tampines is on pg 8.
there is a mix up.

 

[eErotica69]

Actually more info is need before we can conclude whether Sim Lian we scream about the 76%
profit market.

1. When they did bid for the land?

Point is, they have bought land when the market was low, and now selling when the market is high! So 76% also factor into consideration they risk the took.

Put it simply, if they bought a land earlier and they did NOTHING to the land, and sell it now for 60% profit, then 76% profit means not a lot in relative terms!!

Well, I am just looking at it from the economic point of view, i.e. Market Timing!!