journo
12-09-22, 10:51
Test markets for Sky Eden and Lentor Modern are planned; CDL and GuocoLand are among the top property picks: DBS
Sep 08, 2022
According to a report that was released by DBS on Thursday, strong sales momentum for the most recent two launches in the residential market, Sky Eden @ Bedok and Lentor Modern, will likely result in a further squeeze in supply and drive average pricing higher in the second half of 2022, albeit at a modest pace (Sep 8).
The two developments will be trying to "test the market" with an indicative pricing of S$2,000 per square foot (psf) forward and maybe more. According to the experts, this would represent a new standard for projects in the Outside Central Region if and when it were to be accomplished.
When the developer of Sky Eden, Fraser Property, made the announcement early on Thursday that approximately 75 percent of the 158-unit property had been sold at an average price of roughly S$2,100 psf, the goal estimations had already been met for the project. Sky Eden is located in Singapore.
The analysts had this to say about the future of Sky Eden: "Sky Eden @ Bedok is likely to enjoy excellent buyer reaction given its position within an established town centre in Bedok and the fact that it is the first launch in the site in the last ten years."
On the back of the progressive opening of the Thomson-East Coast Line, which would strengthen the site's accessibility to the Central Business District, the research firm considers GuocoLand's Lentor Modern to be an appealing project. This perspective was supported by the findings of the study.
The analysts anticipated an accretion to GuocoLand's revalued net asset value (RNAV) of up to 1.2 percent for every S$100 psf gain that was over the planned S$2,000 psf for the project. RNAV is an abbreviation for revalued net asset value.
In spite of fears that there may be a downturn in the residential market due to economic uncertainty, DBS said that developers had excellent optimism. The organisation believes that these concerns will most likely be allayed by successful pre-sale outcomes, which will protect the developers against reductions in their net asset value (NAV) or RNAV.
As a matter of fact, investors may even anticipate property developers will have greater profitability and an increase in NAV as a result of the strength of their commercial and hotel portfolios.
Its top recommendations for the industry were City Developments Limited (CDL): C09 0% and GuocoLand: F17 +0.56%. Both of these companies were chosen because of the "attractive values" they provide, with a price to NAV ratio of 0.9 times and 0.5 times, respectively.
According to DBS, additional catalysts for the two property bets might come from a turnaround in operational metrics for their hotel and commercial portfolios. This would come on top of the solid pre-sale that both properties had.
As of 11:55 a.m. on Thursday, shares of CDL were trading up 0.6%, or $0.05, at $8.33, while shares of GuocoLand rose 2.3%, or $0.04, to $1.75. Both of these increases were based on trade prices.
Sep 08, 2022
According to a report that was released by DBS on Thursday, strong sales momentum for the most recent two launches in the residential market, Sky Eden @ Bedok and Lentor Modern, will likely result in a further squeeze in supply and drive average pricing higher in the second half of 2022, albeit at a modest pace (Sep 8).
The two developments will be trying to "test the market" with an indicative pricing of S$2,000 per square foot (psf) forward and maybe more. According to the experts, this would represent a new standard for projects in the Outside Central Region if and when it were to be accomplished.
When the developer of Sky Eden, Fraser Property, made the announcement early on Thursday that approximately 75 percent of the 158-unit property had been sold at an average price of roughly S$2,100 psf, the goal estimations had already been met for the project. Sky Eden is located in Singapore.
The analysts had this to say about the future of Sky Eden: "Sky Eden @ Bedok is likely to enjoy excellent buyer reaction given its position within an established town centre in Bedok and the fact that it is the first launch in the site in the last ten years."
On the back of the progressive opening of the Thomson-East Coast Line, which would strengthen the site's accessibility to the Central Business District, the research firm considers GuocoLand's Lentor Modern to be an appealing project. This perspective was supported by the findings of the study.
The analysts anticipated an accretion to GuocoLand's revalued net asset value (RNAV) of up to 1.2 percent for every S$100 psf gain that was over the planned S$2,000 psf for the project. RNAV is an abbreviation for revalued net asset value.
In spite of fears that there may be a downturn in the residential market due to economic uncertainty, DBS said that developers had excellent optimism. The organisation believes that these concerns will most likely be allayed by successful pre-sale outcomes, which will protect the developers against reductions in their net asset value (NAV) or RNAV.
As a matter of fact, investors may even anticipate property developers will have greater profitability and an increase in NAV as a result of the strength of their commercial and hotel portfolios.
Its top recommendations for the industry were City Developments Limited (CDL): C09 0% and GuocoLand: F17 +0.56%. Both of these companies were chosen because of the "attractive values" they provide, with a price to NAV ratio of 0.9 times and 0.5 times, respectively.
According to DBS, additional catalysts for the two property bets might come from a turnaround in operational metrics for their hotel and commercial portfolios. This would come on top of the solid pre-sale that both properties had.
As of 11:55 a.m. on Thursday, shares of CDL were trading up 0.6%, or $0.05, at $8.33, while shares of GuocoLand rose 2.3%, or $0.04, to $1.75. Both of these increases were based on trade prices.