Property: Over the weekend, the first EC project was launched since the qualifying income ceiling was raised from $12k to $14k at the National Day Rally.
However, sales at Signature at Yishun were lukewarm, with just ~20% of its 525 units released sold, despite the lower-than-average price tag of ~$750 psf compared to ~$800 psf for other ECs.
Market observers cite that the application rate of just under one buyer per unit is a clear indication that the market is weak, perhaps further exacerbated by the fragile global environment and stock market.
In addition, some buyers may be concerned about the expected rise in interest rates and their employment security.
Overall, Maybank-KE believes that prices for the mass-market segment still remain elevated and any anticipated policy easing may only come later.
The house top property picks are Wing Tai (Buy: TP $2.37), Ho Bee (Buy: TP $2.75) and City Dev (Buy: TP: $11.40).