Sing Land

Property / Sing Land: The tender for the Alexandra View (Parcel B) residential site saw 6 bids of $782-970/ psf ppr vs market expectation of $930- 1,000, but the number of bids disappointed (market expected 8- 10) despite its attractive location. Credit Suisse says this could signal developers being more conservative on land bids as conventional developers have of late been more actively winning bids. The winning bid came from Singland at $970 psf ppr , slightly higher than the $960 Wing Tai-consortium paid for a nearby plot in Sep-12 and 29% above the Alexandra Road site CDL-consortium won in Dec-11. CS estimates a break-even price of $1,250-1,350 psf for the c.375-unit project compared with the ASP of nearby projects of ~$1,500 psf for Ascentia Sky, and CDL’s Echelon project expected to be launched closer to $1,600 psf. Sing Land trades at 0.6x P/B. Nevertheless, among the SG developers, CS prefers CapitaLand (1.05x P/B); expects earnings momentum to improve (driven mainly by CMA) while its downside is supported by buybacks. Adds, City Dev may see some pressure if near-term volumes fall post recent measures but any pullbacks present an entry opportunity.