A headline total of 2,119 new private homes (incl. 313 EC units) were sold in Jun 13, up 11% MoM and 23% YoY. The highlight of the month was undoubtedly the launch of 738-unit J Gateway near Jurong East MRT station, which saw 737 units snapped up at a median price of S$1,486 psf. Our current base case is for FY13 primary sales (excluding EC) to slow to 16k-18k units sold – an 18% to 27% dip versus 22k units in FY12. With 10k units sold in 1H13, we expect sales to further ease as the market digests the impact of latest curbs. Maintain NEUTRAL on the residential property sector. We prefer developers with strong balance sheets and diversified exposure, such as CapitaLand [BUY, S$3.77] and Keppel Land [BUY, S$4.59]. In the mid-small cap space, we prefer Roxy-Pacific [BUY, S$0.76] which is sitting on a substantially sold development portfolio and has a track record of prudent execution.
Headline total of 2,119 units sold - up 10.8% MoM.
A headline total of 2,119 new private homes (including 313 EC units) were sold in Jun 13, up 11% MoM and 23% YoY. Excluding EC and landed-units, 1,795 units were sold in the month, up 25% MoM and 33% YoY with a take-up rate of 102% (versus 97% in May 13). The inventory of launched and unsold units (excl. EC/landed) in the market, however, increased by 1% MoM to 5,330 units due to returned units from several projects.
Record launch at J Gateway
The highlight of the month was undoubtedly the launch of 738-unit J Gateway near Jurong East MRT station, which saw 737 units snapped up at a median price of S$1,486 psf. With this as a driver, Jun 13 sales continue to be dominated by the mass market segment (Outside Central Region or "OCR") with 1,357 units sold. This formed 75.6% of total sales and was up 89% MoM. Sales in the mid-tier space (Rest of Central Region or "RCR") dipped 46% MoM to 324 units due to a lack of major launches over the month. In Jun 13, there were only 104 units launched at new RCR projects. Over Jun 13, other key launches include Jewel@Buangkok (616 total units, Buangkok Drive) with 282 units sold at S$1,183 psf, and EC Forestville (653 total units, Woodlands Dr. 16) with 226 units sold at S$730 psf.
Base case: FY13 primary sales likely 16k-18k units
Our base case is for FY13 primary sales (excluding EC) to slow to 16k-18k units sold – an 18% to 27% dip versus 22k units in FY12. The market has clocked in 10k units sales in 1H13, and we expect the rate to further ease as it digests the impact of the latest curbs. That said, we view a primary sales rate of 16k per year pointing to a still relatively healthy market.
Maintain NEUTRAL.
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$3.77] and Keppel Land [BUY, S$4.59]. In the mid-small cap space, we prefer Roxy-Pacific [BUY, S$0.76] which is sitting on a substantially sold development portfolio and has a track record of prudent execution.
A headline total of 2,119 new private homes (including 313 EC units) were sold in Jun 13, up 11% MoM and 23% YoY. Excluding EC and landed-units, 1,795 units were sold in the month, up 25% MoM and 33% YoY with a take-up rate of 102% (versus 97% in May 13). The inventory of launched and unsold units (excl. EC/landed) in the market, however, increased by 1% MoM to 5,330 units due to returned units from several projects.
Record launch at J Gateway
The highlight of the month was undoubtedly the launch of 738-unit J Gateway near Jurong East MRT station, which saw 737 units snapped up at a median price of S$1,486 psf. With this as a driver, Jun 13 sales continue to be dominated by the mass market segment (Outside Central Region or "OCR") with 1,357 units sold. This formed 75.6% of total sales and was up 89% MoM. Sales in the mid-tier space (Rest of Central Region or "RCR") dipped 46% MoM to 324 units due to a lack of major launches over the month. In Jun 13, there were only 104 units launched at new RCR projects. Over Jun 13, other key launches include Jewel@Buangkok (616 total units, Buangkok Drive) with 282 units sold at S$1,183 psf, and EC Forestville (653 total units, Woodlands Dr. 16) with 226 units sold at S$730 psf.
Base case: FY13 primary sales likely 16k-18k units
Our base case is for FY13 primary sales (excluding EC) to slow to 16k-18k units sold – an 18% to 27% dip versus 22k units in FY12. The market has clocked in 10k units sales in 1H13, and we expect the rate to further ease as it digests the impact of the latest curbs. That said, we view a primary sales rate of 16k per year pointing to a still relatively healthy market.
Maintain NEUTRAL.
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$3.77] and Keppel Land [BUY, S$4.59]. In the mid-small cap space, we prefer Roxy-Pacific [BUY, S$0.76] which is sitting on a substantially sold development portfolio and has a track record of prudent execution.
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