Property

Property: Maybank-KE is surprised by the strong take-up of two soft launches over the weekend, i.e. Botanique at Bartley by UOL, and North Park Residences at Yishun by Frasers Centrepoint, which point to strong mass-market sentiments, despite aggressive pricing. That said, this could be due to the attractive absolute price quantum of less than $1m/unit.

For instance, more than 300 units were sold at North Park Residences, despite its $1,300 price tag, at 24% premium to nearby projects. A large number were 2BR (less than 753 sf) or smaller and priced below $1m.

Meanwhile, Botanique at Bartley’s pricing was relatively in-line with nearby projects – Bartley Ridges and Bartley Residences, which were sold over 2012-early 2014, suggesting mass market prices have yet to correct meaningfully. More than 70% of Botanique at Bartley is priced at less than $1m.

The sticky price in mass-market properties is despite an impending supply surge, implying that policy easing will not come soon.

Elsewhere, Maybank-KE prefers high-end developers as sharp price falls amid an artificially suppressed market implies that this market segment has the greatest potential for policy easing. Wing Tai (Buy, TP $2.37) and Ho Bee (Buy, TP $2.75) are best proxies to the high end market.