Sim Lian says Centrale 8 land price, GFA in BT article incorrect

In an SGX statement, Sim Lian Group says the land price and maximum permissible Gross Floor Area published in the Business Times article “Profit margins for DBSS developers ‘look high’” on 30 June 2011 was incorrect.

Sim Lim says the land price and GFA should have been $178,128,000 and 682,384.9 square feet respectively and not $82,222,000 and 721,188 square feet as reported.

Based on the figures, the profit margin would have been lower than that calculated by BT.

The project in Tampines had made the headlines when the initial price of its most expensive five-room unit hit $880,000. That was later adjusted to $778,000.

In a separate blog entry on Saturday, Minister for National Development Khaw Boon Wan also highlighted the errors in the newspaper report.

Khaw says the article had alleged that the DBSS developer's profit margin for Centrale 8 was 76%, even after it had reduced its highest selling price by more than $100,000.

He says based on these figures alone, the profit margin would have been 26%, not 76%.