Property Development & Inventory - CGS-CIMB Research 2021-04-15: Good Take-Up At New Launches Boosts Sales

Property Development & Inventory - CGS-CIMB Research | SGinvestors.io UOL GROUP LIMITED (SGX:U14) CAPITALAND LIMITED (SGX:C31) CITY DEVELOPMENTS LIMITED (SGX:C09)

Property Development & Inventory - Good Take-Up At New Launches Boosts Sales




Mar home sales boosted by new project launch

  • Mar monthly home sales came in at 1,373 units, or 1,296 units excluding executive condominiums (EC). Excluding ECs, volume transaction was 96% higher y-o-y and double that of Feb 2020, due mainly to the launch of Midtown Modern, which made up 28% of total monthly sales. Other top selling projects include Treasure at Tampines, Amber Park and Ki Residences at Brookvale.
  • Core Central Region (CCR) projects made up 42% of the monthly volume transactions while city fringe projects made up 30%, and suburban projects accounted for the balance 28%.


Active private resale market

  • Transactions in the first three months of 2021 totalled 3,550 units, up 57% y-o-y and accounted for 36-39% of our full-year expectation of 9,000-10,000 units.
  • Meanwhile, according to Singapore Real Estate Exchange (SRX) data, the resale market remained active with 1,662 units changing hands in Mar, up 28.9% m-o-m and 122.5% y-o-y, led by active transaction volumes in the Outside Central Region. We believe the demand was underpinned by the still-low interest rate environment, a measure of pent-up demand, and wealth creation from a robust stock market.


Forecast 0-5% hike in private home prices in 2021F

  • According to SRX, overall resale prices ticked up 0.1% m-o-m bringing end-Mar 2021 prices up 2.4% compared to end-2020. We expect private home prices to rise a slightly better 0-5% in 2021F, thanks to robust demand. Overall, we expect prices to pace the economic recovery as developers continue to move inventory.

Reiterate sector Overweight






LOCK Mun Yee CGS-CIMB Research | https://www.cgs-cimb.com 2021-04-15
SGX Stock Analyst Report ADD MAINTAIN ADD 7.910 SAME 7.910
ADD MAINTAIN ADD 4.040 SAME 4.040
ADD MAINTAIN ADD 8.970 SAME 8.970



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