One Chuan Grove price: what the land cost tells you

The land price per square foot of floor area is not a guide to the selling price. On top of the land, a developer pays for construction, design, financing over several years, marketing, taxes and charges, and builds in a margin. All of that sits between the land cost and the price on the price list.

It is also an average. Selling prices vary across a development by unit type, size, floor level, facing and timing. A small unit high up with an open view and a large unit on a low floor facing a neighbouring block will not sell at the same rate per square foot, even though the land under them cost the same.

What the land price is useful for is comparison. When the One Chuan Grove price list is released, set it against the land cost per square foot, and against other recent launches whose land prices are also public. That comparison is more telling than any single headline price.

Price per square foot is the usual yardstick, but it only compares like with like. A one-bedroom home almost always carries a higher rate per square foot than a four-bedroom home in the same development, because fixed costs such as the kitchen and bathroom are spread over a smaller area. Compare unit types with unit types.

Compare totals as well as rates. For most buyers the question is what the home costs in full and what the loan and monthly repayments will be. A lower rate per square foot on a larger home can still mean a higher total than a smaller home elsewhere.

Set new launch prices against resale prices nearby, remembering the difference in age and remaining lease. A new 99-year leasehold home starts with its full lease, while an older leasehold home nearby has fewer years left.

Finally, compare within the development. Once the price list is out, compare floors and facings for the same layout inside One Chuan Grove.