Tuesday, 18 March 2014

Singapore Property

UOBKayhian on 18 Mar 2014

According to the Urban Redevelopment Authority (URA), developers sold sales 724 units (+28% mom, +2% yoy) in February vs a launch of 671 units (+22% mom, +157% yoy). Including executive condominiums (ECs), 769 units were sold. We believe the market has over-discounted the negative prospects for the residential sector, pricing in a 40-50% fall in property prices. We expect property prices to undergo a healthy 5-10% correction in 2014. We prefer deep value and diversified developers. Keppel Land, Ho Bee and Wing Tai are our picks.

Limited new launches continued to impact home sales, with the two new launches Rivertrees Residences (218 units sold, S$1,111psf) and Riverbank @ Fernvale (211 units sold, S$1,033psf) accounting for 59% of total sales for February. Developers have been holding back launches in anticipation of a relaxation of property measures, but as this was not forthcoming in Budget 2014, we anticipate the pace of new launches will pick up in the months ahead.

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