Construction Costs Exceeds Land Costs

Some 99yr condo sites are seeing their construction costs higher than their land costs, bcos of increasing construction prices and weak sentiments in private housing developments.

For mass-mkt developments, construction costs was $260 - $320 psf in 1Q08, but has risen to $280 - $350 psf in 2Q08. Thus a $200 - $250 psf condo site equates to a breakeven costs of $650 - $700 psf.

* AsiaOne-Costs *