AllGreen: Deutsche maintains Hold with TP of $1.11 based on 42% disc to RNAV. Highlights recent launch of Suites at Orchard has sold abt 43%(1-2BR units) and attracted a good turnout. Prices ranged from $2000-2200 psf, which was a premium to comparable freehold projects in the area, while majority of buyers were local. Highlights comfortable margins of around 40% based on breakeven cost of $1200, with a higher than estimated PSF…..
However Deutsche expects demand to moderate in the near term and remain cautious on the residential developers in light of the govt’s aggressive policy stance.
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