SGX Stocks and Warrants

Author: kimeng   |   Latest post: Tue, 16 Oct 2018, 12:14 PM


SG Residential Sector: Collective Sales Market Heating Up

Author:   |    Publish date:

Last week, MCL Land agreed to acquire Eunosville through a collective sale transaction for S$765.8m, which including an estimated S$194m differential premium translates to a bullish S$909 psf ppr.

Coming on the heels of the Oxley-led consortium’s en-bloc acquisition of Rio Casa for S$575m, Eunosville is the fourth enbloc transaction to date and brings the year-todate total to S$1.5b – already past the S$1.0b and S$380m annual totals seen in 2016 and 2015, respectively.

We expect to see more collective sales this year as developers move quickly to replenish their landbanks, which for many now lie at multi-year lows given falling home prices since 2014.

Through our channel checks, buyer sentiments appear to have improved after the latest tweaks to the property curbs in March where some measures relating to the SSD and the TDSR were relaxed.

We believe these changes were, on a net basis, supportive of the physical market and continue to forecast for home prices to reach an inflection point by 2018.

We maintain a BUY rating on the property sector and our top picks are CapitaLand [BUY, FV: S$4.07], Wing Tai [BUY, FV: S$2.37] and Wheelock Properties (SG) [BUY, FV: S$2.27].

Source: OCBC Research - 5 Jun 2017

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Chart Stock Name Last Change Volume 
CapitaLand 3.08 0.00 (0.00%)
Wing Tai 1.94 0.00 (0.00%)
Wheelock Prop 2.10 0.00 (0.00%)

Market Buzz

Stock Date Type Subject
CapitaLand 12-Oct-2018 Announcement Asset Acquisitions and Disposals::Establishment of wholly owned subsidiary, CREDO I China GP Pte. Ltd.
Wing Tai 12-Oct-2018 Announcement Employee Stock Option/ Share Scheme::Notice of Transfer of Treasury Shares
Wing Tai 12-Oct-2018 Announcement Disclosure of Interest/ Changes in Interest of Director/ Chief Executive Officer::Changes in Interest of Director
Wheelock Prop 16-Oct-2018 Announcement Delisting of Security::Mandatory

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