Sg Property

Sg Property: June new private home sales fell 25% qoq, -24%yoy to 1,182 units. This is despite an increase of 33% in no. of units launched from 1,215 to 1,614 units. Annualised 1H11 sales of 16,314 units are relatively on par with 2010’s levels. Of the 1,182 units, 833 units were sold in the suburban areas, 277 in the city and 122 in central areas.

Volumes were due to new mass mkt launches such as the Far East’s Woodhaven at a new benchmark of $981 psf clocking the best sales. Others include the best selling EC, Belysa at Pasir Ris with 153 units sold at $700 psf and Miltonia Residences at also new benchmark of $877 psf. High-end sales were subdued, Private home prices rose 1.9% in 2Q, the smallest gain in 2 yrs.

DB notes moderation in volume and price growth reaffirm “soft landing scenario” and preferred picks for sector are Keppel Land and Capitaland. Goldman believes more measures are possible if prices do not moderate with UOL , Capitaland and REITs preferred. RBS expects further cooling property measures and remains Neutral on Sg property sector with Buy calls on Keppel (TP$5.90), OUE(TP$4.55) and UOL TP($6.35). CS is of view policy overhang could persist on residential side and prefers tourism sector CDLHT, MCT, office CCT, KREIT and developers with exposure to both sectors, OUE and CDL.

SG Property: Nomura issues report that higher cost of living may have impact on co’s decision to set up offices in Sg. Sg overtakes HK and breaks into the top 10 ranking for the first time since 2000. KREIT, Keppel Land, Suntec REIT results next week with focus remaining on Sg office. KepLand’s results will likely focus on pre-commitment levels at OFC and MBFC Tower 3, as well as its 2Q11 sales and launch plans in China. Market will likely focus on the committed passing rent at Suntec City Mall, as well as the avg signing rent at Suntec City office.