Rising land bids push new condo prices into focus – will S$3,000 psf be a new normal?

[SINGAPORE] New residential projects are increasingly setting fresh benchmark prices, as higher bids for government land sale (GLS) sites escalate baseline costs and push up new launch pricing. 

Strong take-up at freshly marketed projects over the last two years has given developers greater confidence to compete aggressively for GLS sites, analysts said.

But higher land costs immediately raise the floor on pricing, lifting project break-even levels already pulled up by rising construction costs.