The Centro Residences development by Far East Organization, which is located strategically next to AMK hub and opposite AMK MRT, has been awarded to homegrown developer Lian Beng Group at S$78 million construction deal. It is a construction of a 34-storey residential tower with a multi-storey carpark, clubhouse, swimming pool and playground. The work on the development is expected to start in March and will be completed by January 2013.

Remember that the Centro Residences was the first development in suburban to be launched at  over $1000 psf, moreover it is of a 99 year leasehold tenure. Check back the record and realized the Far East has acquired it at a relatively high land cost, which has to be passed to the buyers.

With the construction cost per sf at $231 psf, the breakeven cost for Far East is easily $935. Therefore by launching the development at more than $1,100 psf, their profit margin is still pretty healthy at 17%.

Afterall the location is considered pretty prime even thought it is in suburban area. Ang Mo Kio is ‘one of the few housing estates in Singapore‘ that is accessible, has well-developed amenities and job opportunities in clean and well-organised industrial estates nearby. Key among these advantages is Ang Mo Kio Hub, a mall in the heart of town that is integrated with an air-conditioned bus interchange. It was completed in 2006 and sits just across the road from the Ang Mo Kio MRT station.