AllianceDBS Research said private developers face the challenge of supplying affordably-priced properties at the expense of lower profitability due to the rising cost environment (land, compliance, construction).
Let check what is the land cost for BSS, based on its IPO Prospectus
Total land cost =Land cost + Finance cost
=RM250m + RM113.6m
=RM363.6m
Gross land area obtained = 5,233 acres
Land costs per acre = RM69,367.48
Land cost per square foot = RM1.59
Even though Matrix need to surrender 1,000 acres for part compensation of Felda settlers + 100 acres for Menteri Besar Incorporated
Land cost = RM363.6m / (5,233-1,000-100)
= RM2.02 per square foot.
And Matrix sell to us at RM200 per square foot, good money!
haha of course bro... the RM200 per sq ft u have to deduct the construction cost, miscellaneous cost and bla bla bla... only u get the profit... although the construction cost have really increased over the years... but I dont think the developers' margin got press really hard... they just dont want to lost the margin... thats it...