City Development

City Development: Its 616-unit Jewel@Buangkok launch over the weekend attracted a large crowd, dominated by local buyers and upgraders, with a firm number of first time homebuyers. Agents noted that investors were also well represented. The most popular units were the 2 bedroom units. CDL's third launch (following D'Nest and Bartley Ridge) saw an ASP of $1,150 psf (inclusive of VIP and early bird discounts), as compared to DB's estimate of $1,000 psf. In comparison, La Fiesta, located near the Sengkang MRT has transacted at $1,175 psf, while the Luxurie last transacted at $1,230 in March. DB estimate that marking to market the latest ASPs would add approximately 7¢ to its RNAV (c.0.5%). DB highlights the mixed response to recent launches, with relatively weaker take up rates for projects without proximity to MRT stations. Looking ahead, there is still significant supply in the pipeline, and hence believe that projects with weaker dynamics may need to compete more aggressively on pricing. DB maintain HOLD, with TP of $11.01.