Roxy Pacfic

Roxy Pacfic: Reproted that it has sold 75% of the total 251 units at an avg price of $2,000psf, ranging for its launch of Spottiswoode 18, in the 1st major launch following the 4th round of property coolong measures. There was a large turnout at the showflat with buyers mainly local investors. Roxy was reportedly aiming to launch at prices 10% higher prior to the measures…

The headline pricing is 8% higher than UOL's Spottiswoode Residences (avg $1,850psf). In absolute terms, prices range from $700k implying a min down‐payment of $280k for a 2nd time buyer….

Detusche Bank note that demand was stronger than expected, especially coming so soon after the latest measures and believe this reflects the relative affordability of small format units & excessive liquidity. With the increase in down payment to 40% for 2nd time buyers, larger unit sizes with higher overall pricing are disproportionately affected & this could perpetuate the downsizing trend....

While the firm response could boost sentiment in the near term, this could stoke concerns of a further round of measures should sales remain exuberant…..

We note that at current price. Grp valuations are not cheap, with group trading at 1.4x FY11E P/B vs peers average of 1.1x, while Gearing is high at 180.4% vs peers average of 33.9%.