Originally Posted by
amk
Say developer bought a land of 1000 sqft from gov, with plot ratio such that he can only build up 2000 sqft, restricted by the maximum allowable GFA.
Total development cost plus marketing, legal and profit margin is 3 million dollars. So naturally developer will sell 2 units of 1000 sqft each, at 1.5mil price tag. No waste space for buyer. But 1.5mil, many upgraders cannot afford.
Now gov say ok you can have some extra AC ledge which dun count to GFA. Voila developer say let's reconfigure the apartment to be total 3000 sqft built up, with 1000sqft extra being the AC ledge and other non GFA items. So now I can configure it as 3 units with 1000 sqft each, albeit with lots of waste space, BUT with a selling price of 1mil each ONLY !
Buyer is happy to see "wow price is so much cheaper, for the SAME size! So affordable ! Now I can afford this 1mil no problem." . Of course nothing changes at the developer end.
Dun laugh at the absurdity of this story. Tis is exactly what is happening now.