Latest data from JLL and STB suggest rental weakness across different asset classes in 4Q11, with the exception of hotels where RevPAR in October and November appears to have reached a record high of S$225. We expect CDREIT to deliver the strongest set of numbers amongst the REITs under our coverage in the upcoming results season. While office REITs’ results are likely to show slower lease renewals and higher vacancy, we believe these concerns are well anticipated by the market and hence already priced.
Next week: results, December pre-sales, GLS tender closes
Besides the results, investors are likely to focus on December pre-sales data to be released on Jan 16 as well as the close of two GLS tenders on Jan 17 and 18. Following the Dec 7 cooling measures, we expect last month’s pre-sales volume to show a significant m-m drop. On the other hand, property consultants expect the Sengkang commercial site and the Kovan condo site to draw top bids of S$800 psfppr and S$550-560 psfppr, respectively.
Key news
- Some return units to developers, fearing price dip
- CDL picks up a third site in China for CNY540mn
- Luxury home market faces oversupply
- Suburban retail rents expected to drop
- HDB offers 3,923 new flats in year's first BTO launch (Read full report)
