SG Proeprty

SG Proeprty: Following the latest set of property data which saw non-landed private residential property sales jumping 96% m/m to 1,470 new units sold (excluding ECs), Maybank-KE cautions investors that it is still too early to rejoice. The house highlights that upcoming new launches in the pipeline include M+S Pte Ltd’s Marina One (1,042 units), KepLand’s Highline Residences (500 units) and Wing Tai’s The Crest (469 units). All three projects are likely to be priced in excess of $1,500 psf, suggesting that sell-through rates may be uninspiring. Year-to-date sales of 4,010 units (excluding ECs) were also just half of last corresponding period, coupled with higher price points of upcoming launches, May’s robust demand is unlikely to be repeated. As such, Maybank-KE is cutting its full-year new home sales projection by ~30% to 9,000-10,000 units (from 13,000-14,000 units). On the back of expectations for extended dovish monetary policies, the house roll-over its average selling price (ASP) projections from a 10% decline in 2014 to a 10-15% decline from mid-2014 to end-2015. Overall, Maybank-KE maintains its NEUTRAL stance on the Singapore residential property market and reiterates its view that the cooling measures are likely to stay amid the low interest rate environment. Top picks are CapitaLand (BUY: TP $3.88) and Keppel Land (Buy, TP $4.60) for their diversified portfolios.