CAPITALAND LIMITED
C31.SI
CITY DEVELOPMENTS LIMITED
C09.SI
FRASERS CENTREPOINT LIMITED
TQ5.SI
Singapore Property Sector - Dull Feb with a glimmer of hope from new launches
- Another quiet month in Feb; sales volume -23% y-o-y
- YTD sales in OCR +5% y-o-y vs central region's -41%
- Strong interests on Cairnhill Nine, Wisteria and Wandervale
- Potential pickup in volume on attractive prices
Another quiet month in Feb.
- February remained another quiet month with a 23% y-o-y drop in new private residential units sold to 301 transactions (430 units including executive condominiums).
- Given the lack of new property launches, developers focused on marketing existing unsold stock.
- Projects like The Panorama and Kingsford Waterbay each sold 18 units (recording take-up rates of more than 90%), followed by Principal Garden (16 units; take-up rate 72%), while Poiz Residences and Kingsford Hillview Peak sold 16 units each (97% and 54% respectively).
- The executive condominium (EC) segment saw steady sales momentum, selling 129 units in Feb-16 (vs 156 units in Jan- 16), with The Terrace and The Vales selling 23 units and 17 units and recorded take-up rates of 47% and 37% respectively.
YTD sales in OCR +5% y-o-y.
- Sales volume in OCR region grew 5% y-o-y while central region fell 41% y-o-y largely due to RCR. However, on m-o-m, sales volume in OCR fell 13% (or 49 units) while volumes in the CCR and RCR regions remained relatively stable.
Properties continue to sell if priced attractively.
- The debuts of new properties; namely Capitaland’s Cairnhill Nine, Northern Resi’s Wisteria and Sim Lian’s Wandervale (EC) have received strong interests, a positive indication amidst a weak property market.
- According to news reports, the properties recorded 67%, 84% and 50% sales respectively during their recent launches. The properties were priced at attractive levels, approximately 6-13% below latest comparable transactions.
- Apart from local interests, 50% of the buyers were foreigners, mostly from Indonesia.
Potential pickup in volume on attractive prices.
- The recent launches showed some signs of improvement in buyer sentiment but we do not believe it to signal a turnaround in the expected downtrend in prices in the medium term.
- While we remain cautious, volume may increase if projects are priced attractively.
- A potential positive catalyst that could rerate the sector is the relaxation of property policies.
- Picks: CAPL, City Dev, Frasers Centrepoint Limited.
Derek Tan
DBS Vickers
|
Singapore Research Team
DBS Vickers
|
http://www.dbsvickers.com/
2016-03-16
DBS Vickers
SGX Stock
Analyst Report
3.70
Same
3.70
10.26
Same
10.26
2.05
Same
2.05
