URA reported that a headline total of 3,072 new private homes (including 279 EC units) were sold in Mar 13, which was up 235% MoM and 1% YoY. These healthy numbers were driven by a wave of new launches after the Lunar New Year, including D'Nest (912 total units, Pasir Ris) 699 units sold at a median S$963 psf, Bartley Ridge (868 total units, Mt Vernon Rd) 367 units sold at S$1,296 psf and Urban Vista (582 total units, Tanah Merah) 348 units sold at S$1,503 psf. We see sales reflecting still firm residential demand and an environment of continued liquidity but remain cognizant of potential incremental curbs should the housing sector show excessive activity going forward. Maintain NEUTRAL on the residential property sector and we prefer developers with strong balance sheets and diversified exposure. Our top picks are CapitaLand [BUY, S$4.29], Keppel Land [BUY, S$4.53] and CapitaMalls Asia [BUY, S$2.55].
Headline total of 3,072 units sold - up 235% MoM.
URA reported that a headline total of 3,072 new private homes (including 279 EC units) were sold in Mar 13, which was up 235% MoM and 1% YoY. Excluding EC and landed units, 2,781 units were sold in the month - up 298% MoM and 18% YoY and showing a take-up rate of 80% (versus 271% take-up in Feb 12). The inventory of launched and unsold units (excl. EC/landed) in the market increased by 15% MoM to 5,326 units.
Wave of new launches driving sales.
The bulk of new home sales in Mar 13 were in the "Outside Central Region" with 1,808 units sold, which formed 65% of total sales and is up a whooping 445% MoM over 332 units sold the previous month. Sales in the "Rest of Central Region" also increased significantly in Mar 13 with 821 units sold – up 386% MoM. These healthy numbers were driven by a wave of new launches after the Lunar New Year, including D'Nest (912 total units, Pasir Ris) 699 units sold at a median S$963 psf, Bartley Ridge (868 total units, Mt Vernon Rd) 367 units sold at S$1,296 psf, Urban Vista (582 total units, Tanah Merah) 348 units sold at S$1,503 psf. On the other hand, we continue to see a challenging outlook for the high-end segment; 152 units in the "Core Central Region" were sold in Mar 13 - down 23% MoM in the third consecutive month of decline.
Still wary of regulatory risks in residential sector.
We see Mar 13 sales reflecting still firm residential demand and an environment of continued liquidity but remain cognizant of potential incremental curbs should the housing sector show excessive activity. With this in mind, given residual uncertainty, we believe Mar 13 numbers to be also a partial function of developers being more aggressive in using price incentives and displaying greater urgency in execution.
Maintain NEUTRAL on sector.
We have a NEUTRAL rating on the residential property sector and prefer developers with strong balance sheets and diversified exposure. Our top picks are CapitaLand [BUY, S$4.29], Keppel Land [BUY, S$4.53] and CapitaMalls Asia [BUY, S$2.55].
URA reported that a headline total of 3,072 new private homes (including 279 EC units) were sold in Mar 13, which was up 235% MoM and 1% YoY. Excluding EC and landed units, 2,781 units were sold in the month - up 298% MoM and 18% YoY and showing a take-up rate of 80% (versus 271% take-up in Feb 12). The inventory of launched and unsold units (excl. EC/landed) in the market increased by 15% MoM to 5,326 units.
Wave of new launches driving sales.
The bulk of new home sales in Mar 13 were in the "Outside Central Region" with 1,808 units sold, which formed 65% of total sales and is up a whooping 445% MoM over 332 units sold the previous month. Sales in the "Rest of Central Region" also increased significantly in Mar 13 with 821 units sold – up 386% MoM. These healthy numbers were driven by a wave of new launches after the Lunar New Year, including D'Nest (912 total units, Pasir Ris) 699 units sold at a median S$963 psf, Bartley Ridge (868 total units, Mt Vernon Rd) 367 units sold at S$1,296 psf, Urban Vista (582 total units, Tanah Merah) 348 units sold at S$1,503 psf. On the other hand, we continue to see a challenging outlook for the high-end segment; 152 units in the "Core Central Region" were sold in Mar 13 - down 23% MoM in the third consecutive month of decline.
Still wary of regulatory risks in residential sector.
We see Mar 13 sales reflecting still firm residential demand and an environment of continued liquidity but remain cognizant of potential incremental curbs should the housing sector show excessive activity. With this in mind, given residual uncertainty, we believe Mar 13 numbers to be also a partial function of developers being more aggressive in using price incentives and displaying greater urgency in execution.
Maintain NEUTRAL on sector.
We have a NEUTRAL rating on the residential property sector and prefer developers with strong balance sheets and diversified exposure. Our top picks are CapitaLand [BUY, S$4.29], Keppel Land [BUY, S$4.53] and CapitaMalls Asia [BUY, S$2.55].
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