CapitaLand down 12% in August
 
CapitaLand, the biggest property developer in Southeast Asia has seen its share price tumble as much as 12.4% during the selloff last month. The stock finished at $2.77 yesterday, 11.2% below its 50-day moving average of $3.12.
 
In a report released by Macquarie Equities Research (MER) on 31 August, MER believes that CapitaLand is ‘too cheap to ignore’, given the developer is backed by good sell-through rates in their recent China residential launches. Apart from China, CapitaLand is also developing large scale residential projects across other parts of Asia.
 
CapitaLand develops residential projects in Vietnam
 
According to a report on Bloomberg yesterday, CapitaLand is developing its seventh housing project in Vietnam. CapitaLand (Vietnam) Holdings has entered into a joint venture with Thien Duc Trading-Construction Company to develop a 2.6 hectare site into a high-end residential project in Ho Chi Minh City worth US$150 million.
 
This is the third time that the two companies are working together on residential projects in Vietnam. Their earlier co-operations includes ‘The Vista’ and ‘Vista Verde’ which have sold respectively 68% and 92% of the units available as of June this year.
 
This development will bring CapitaLand’s residential portfolio in Vietnam to more than 7,500 homes. Vietnam is currently the third largest market in Southeast Asia for CapitaLand, right after Singapore and Malaysia.
 
Singapore private home sales
 
Separately, data released by the Urban Redevelopment Authority (URA) showed that property developers sold 495 new private homes in Singapore last month, representing a 69.3% decline from the 1,611 sold in July. A report from Channel NewsAsia on 15 September stated that the low sales may be due to the Hungry Ghost Festival which started in the middle of the month and the market was busy with SG50 celebrations before that.
 

Source: Macquarie Research - 17 Sep 2015