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Singapore Property - 2H15 GLS scales down land sales

Shared By Stock Fanatic on Friday, June 12, 2015 | 12.6.15

■ 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 A white site at Marina View/ Union Street has been replaced by another at Central Boulevard.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

Posted on Friday, June 12, 2015 | 12.6.15
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