A headline total of 1,468 new private homes (including 726 EC units) were sold in Aug 2013, up 147% MoM and down 5% YoY. Excluding EC and landed-units, however, only 793 units were sold - up 53% MoM and down 47% YoY with a softer take-up rate of 80% (versus 85% in Jul 13). We believe the market is still finding its legs after the TDSR measures which have moved buyers to further focus on issues of availability of credit and affordability. One key impact is that significant demand has moved to the EC segment, which allows for HDB upgraders to access larger amounts of credit versus private property. EC sales were bullish in Aug 13 with 726 units sold – this constituted 49% of the 1,468 headline number and increased a whopping 548% MoM and 515% YoY. Maintain NEUTRAL on the SG residential sector. Our top picks are CapitaLand [BUY, S$3.77], Keppel Land [BUY, S$4.09] and CapitaMalls Asia [BUY, S$2.55].
Headline total of 1,468 units sold - up 147% MoM
URA reported that a headline total of 1,468 new private homes (including 726 EC units) were sold in Aug 2013, which was up 147% MoM and down 5% YoY. Excluding EC and landed-units, however, only 793 units were sold - up 53% MoM and down 47% YoY with a softer take-up rate of 80% (versus 85% in Jul 13). As a result, the inventory of launched and unsold units (excl. EC/landed) in the market increased by 5% MoM to 5,705 units.
Still mostly mass-market sales with take-up rate lower across all segments
The majority of sales continue to fall in the mass-market segment (Outside Central Region or "OCR") with 544 units sold, constituting 74% of total sales and up 88% MoM. A key driver of sales over the month was the launch at The Tembusu (337 total units, Tampines Rd) which sold 218 units at a median price of S$1,547 psf. Sales in the mid-tier segment (Rest of Central Region or "RCR") dipped for a third consecutive month, falling to 107 units in Aug-13. This was in part due to an absence of large launches; the largest RCR project launched being 23 RC Suites (45 total units, Race Course Lane) with 4 units sold at a median S$1,698 psf.
Dogged by impact of TDSR
The market is still finding its legs after the TDSR measures which have pushed buyers to further focus on issues of availability of credit and affordability. One key impact is that significant demand has moved to the EC segment, which allows for HDB upgraders to access larger amounts of credit versus private property. EC sales were bullish in Aug 13 with 726 units sold – this constituted 49% of the 1,468 headline number and increased a whopping 548% MoM and 515% YoY. EC projects launched in Aug 13 showed strong take-up rates, with Ecopolitan (512 total units, Punggol Walk) selling 335 units at a median S$793 psf and Lush Acres (380 total units, Sengkang West Way) selling 311 units at a median S$790 psf
Maintain NEUTRAL on sector
We prefer diversified developers with strong balance sheets and regional exposure. Our top picks are CapitaLand [BUY, S$3.77], Keppel Land [BUY, S$4.09] and CapitaMalls Asia [BUY, S$2.55].
URA reported that a headline total of 1,468 new private homes (including 726 EC units) were sold in Aug 2013, which was up 147% MoM and down 5% YoY. Excluding EC and landed-units, however, only 793 units were sold - up 53% MoM and down 47% YoY with a softer take-up rate of 80% (versus 85% in Jul 13). As a result, the inventory of launched and unsold units (excl. EC/landed) in the market increased by 5% MoM to 5,705 units.
Still mostly mass-market sales with take-up rate lower across all segments
The majority of sales continue to fall in the mass-market segment (Outside Central Region or "OCR") with 544 units sold, constituting 74% of total sales and up 88% MoM. A key driver of sales over the month was the launch at The Tembusu (337 total units, Tampines Rd) which sold 218 units at a median price of S$1,547 psf. Sales in the mid-tier segment (Rest of Central Region or "RCR") dipped for a third consecutive month, falling to 107 units in Aug-13. This was in part due to an absence of large launches; the largest RCR project launched being 23 RC Suites (45 total units, Race Course Lane) with 4 units sold at a median S$1,698 psf.
Dogged by impact of TDSR
The market is still finding its legs after the TDSR measures which have pushed buyers to further focus on issues of availability of credit and affordability. One key impact is that significant demand has moved to the EC segment, which allows for HDB upgraders to access larger amounts of credit versus private property. EC sales were bullish in Aug 13 with 726 units sold – this constituted 49% of the 1,468 headline number and increased a whopping 548% MoM and 515% YoY. EC projects launched in Aug 13 showed strong take-up rates, with Ecopolitan (512 total units, Punggol Walk) selling 335 units at a median S$793 psf and Lush Acres (380 total units, Sengkang West Way) selling 311 units at a median S$790 psf
Maintain NEUTRAL on sector
We prefer diversified developers with strong balance sheets and regional exposure. Our top picks are CapitaLand [BUY, S$3.77], Keppel Land [BUY, S$4.09] and CapitaMalls Asia [BUY, S$2.55].
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