Property: Unsurprisingly, the government trimmed its 1H16 government land sales supply by 5.2% sequentially to 7,415 units, as it continues to rein in supply amid sluggish sales.
Hospital supply has also been reined in. Since 2H13, hotel supply has been kept in check with no supply offered under both the confirmed or reserve list.
Commercial supply eased 1.8% sequentially to 272,580 sqm with only 11,000sqm offered under the confirmed list with the balance coming from three mixed developments Central Boulevard, Woodlands Square and Holland Road) and one commercial site on Beach Road.
The abovementioned sites are well located and therefore should see decent level of interest among developers, but the huge quantum will limit available and qualified bidders.
Key sites under the confirmed list include Martin Place, one of the few sites located in the centra region, which should attract more bids. CLSA expects a bid of ~$800psf for this site.
CLSA remains overweight developers. Top picks include City Dev, FCL and Capitaland.
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