Bukit Sembawang

Bukit Sembawang: Daiwa interviews CEO Ng Chee Seng on his views on the Spore residential mkt. On the 7th round of cooling measures and white paper policy, Mr Ng felt that the net effect of these two back-to-back ancmts was still more negative than positive. believes it will have an effect on high end property, and developers will likely delay high-end launches. Mr Ng’s immediate focus is on its existing stock, which includes, Paterson Collection (85 units), and St Thomas Walk (219 units). Notes it is becoming increasingly difficult to rely on foreign buyers, as the new immigration measures it is becoming harder for foreigners to buy Spore properties as a means to obtain their Permanent Residency (PR). The group will continue with its landed property launches (Luxus Hills, Phase 6 and 7 and Watercove Ville) bcs these are restricted to Singaporeans and will continue to attract upgraders. It will also offer full or partial reimbursement for the ABSD for these purchases. Mgt concerns were centred around construction costs (up about 5%) and supply (which the govt can control). The stock trades at 1.5x P/B. Daiwa does not have a rating on the stock.