Sing Land / UIC

Sing Land / UIC: UBS notes Apr residential launches are off to a soft start with lukewarm take up at Mon Jervois, a 109 units project by UIC and Sing Land, located in prime Distric 10. The house notes during its Sunday visit, the show flat was relatively quiet ; estimates <15 units sold at ASP of $2,100, net of a 15% + 3% + 5% discount. Highlights a contributing factor to the slow momentum could be the large quantum with a 1 bed room costing $1.4m and a 4 bedroom costing $3.9m, effectively targeting owner-occupiers in the mid/high-end mkt where there appears to be weaker underlying demand. Mgt previously indicated breakeven costs of $1,300 psf and ASP of $1,500- 1,600 psf. While achieved ASP is significantly above initial projections and at a 30% premium to f/h but much older projects in the vicinity, it does not factor the 4.7m floor to ceiling ht/ loft design. Adjusting for this 30-40 sm void space into each unit size, ASPs would be lower at the $1,600-1,700 psf range and in line with surrounding projects. UBS reiterates its preference for UOL (diversified portfolio) and CapitaLand (attractive valn post recent correction).