■ 2H15 confirmed list of 2,130 homes down from 3,020 in
1H15. No sites available in Core Central Region.
■ Moderation was widely expected, though we continue to see
price downside from existing surplus.
■ Maintain Overweight with sector catalysts still expected from
potential lifting of cooling measures. Prefer high-end
developers. Top BUYs Wing Tai & Ho Bee.
Further reduction in residential supply…
Residential. URA has announced its 2H15 Government Land Sales
(GLS). Four sites on its confirmed list should yield about 2,130
homes, of which 520 would be ECs. Thirteen sites on its reserve list
should yield another 5,695 units, including an estimated 820 ECs.
Four remaining sites – for 1,775 private units and 490 ECs - from its
1H15 confirmed list will be awarded by Aug 2015.
Commercial. There are no commercial sites available on its
confirmed list. On its reserve list, sites at Beach Road and
Woodlands Square were carried over from its 1H15 programme. A
white site at Marina View/ Union Street has been replaced by
another at Central Boulevard. This increases the total commercial
space available to 275,580 sq m from 265,130 sq m in 1H15.
.. potentially easing surplus
2H15’s moderation in residential supply was widely expected.
However, given the large unsold inventory already in the market,
we continue to expect pressure on home prices. We see the biggest
surplus in the mass market and note that the Yio Chu Kang EC site
on the 2H15 confirmed list will add 520 units to the more-than-
8,000 units currently available. With no sites for rollout in the Core
Central Region, we believe that the current surplus at the high end
of the market will ease. This is our preferred market segment.
Maintain Overweight with high-end developers, Wing Tai and Ho
Bee, as our preferred picks. (Read Report)
Read Related Report
Source : Maybank Kim Eng Research
Labels: Ho Bee Land, Property Sector, Wing Tai Holdings