CapitaLand

CapitaLand: Deutsche maintains Buy with TP $4.37. CapitaLand’s launch of Sky Vue at Bishan over the weekend met with strong response, with 450 units sold by Sunday evening. Agents noted the strong number of investment purchases, with 1 and 2 bedroom units on lower floors being most popular. Hopes on the street is that a there’s a pick-up in market sentiment following several rounds of property cooling measures. Capitaland’s strategy of building shoebox units seems to work well for Sky Vue, by focusing on smaller unit sizes. Sky Vue’s ASP of ~$1,500 psf is not far off that of Sky Habitat’s ASP of $1,589psf. The latter is also a CapitaLand project and located just next door, but focused on bigger unit sizes. CapitaLand plans to launch its Marine Point project later this year, and also has its Coronation Road landed site in its domestic pipeline. The developer remains Deutsche’s top sector pick, with valuations attractive at 35% discount to its RNAV of $4.86.