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The Continuum Estimated Launch Price/Indicative Price

Kindly take note the above is merely an Indicative Price. It is not the final Selling Price. 

How is the launch price estimated?

Hoi Hup & Sunway build houses and sell them as their business, and they need to generate profits for their shareholders as well. In estimated the launch price for The Continuum, we need to consider the costs, expenses and the profit margin, before we can arrive at the selling price.

Land Cost

As mentioned above, the land was acquired through the GLS tender at $1,440 psf ppr. That will comprise the main bulk of the total costs.

Construction Cost

Generally, the construction costs for a mass market condominium like The Continuum is about $350 psf.

Expense and Profit Margin

Construction cost + Land Cost = Base Cost
Base Cost = $1,440 psf + $350 psf = $1,790 psf

Once we have the base cost, we can now calculate the expense and profit margin, which is about 30% of the base cost.

Expense and Profit Margin = 30% x $1,790 psf = $537 psf

The expense and profit margin will mainly covers

1. administrative expenses such as staffing
2. sales and marketing expenses such as the agency commissions
3. finance costs that need to be paid to financial institutions
4. profit margin which is the profit the developer makes for the development

With all the costs and expenses covered, we can now estimate the launch price to be about $2,327. However, kindly take note that the price psf will vary too depending on the size of the unit etc. Generally, a smaller size unit will have a higher psf as compared to a bigger size unit.

(All prices for The Continuum for Sale displayed here are for reference purposes. Prices are subject to change from time to time without prior notice. This webpage cannot be held responsible for any pricing inaccuracies, omissions and/or dispute.)