From HwangDBS Vickers
June 28, 2011
JUNE 28 — A Hive Of Activity
June 28, 2011
JUNE 28 — A Hive Of Activity
• Sales remain robust even at new benchmark prices for established areas, and reputable developers
• Prices to appreciate further with cost-push, scarcity (low housing starts past two years) and new demand (government policy, MRT, demographic changes
• Top picks: YTL Land, Selangor Properties, Guocoland Malaysia, and SP Setia
On a roll
We attended several launches last weekend and was positively surprised by the large turnout and strong uptake — commendable in view of the 70 per cent loan-to-value cap for third property onwards (since Nov10), interest rate hikes (+75bps since Mar10) and rising global uncertainties.
a) YTL Land’s Groove@Lake Fields semi-d (Sungai Besi, KL)
All 66 units released on Friday (for staff and VIP buyers) and 36 units on Saturday (open to the public) were snapped up within the first 1-2 hours (queue started since Wednesday). Impressive given the RM1.8m-2.7m/unit price-tag (land size: 40 x 80; built-up: 4300-5900sf) and leasehold status (ex-mining land); testament to pent-up demand for landed properties and YTL’s strong following.
b) SP Setia’s Fulton Lane condos (Melbourne)
75 per cent take-up for Phase 1 (297 units; ASP: ~A$700psf or A$365k onwards for 1-3 bedrooms of 550-1200sf), with buyers mainly parents with children studying in Melbourne. Given the overwhelming demand, Phase 2 (400 units) launch may be brought forward to Sep-Oct, likely at 10 per cent higher ASP & marketed overseas (Singapore, Australia). Key selling points: i) Prime location within Melbourne CBD (near Victoria Market, Chinatown, RMIT, Melbourne University); ii) Strong demand for apartments in central city region (low vacancy rate of 3 per cent), driven by government policy (encouraging urbanisation), immigration and housing shortage; and iii) SP Setia’s strong brand name/execution track record.
c) TA’s Damansara Avenue condos (near DesaPark City, KL)
Strong crowd at ballot exercise (229 units; built-up: 614-1905sf; ASP: RM620psf or RM380k onwards). ~70 per cent bookings with preference for smaller units (614-969sf fully sold out, 1350sf limited left).
Strong momentum across the board
SP Setia (best proxy for residential sales) raked in RM248 million sales in May, ahead of 1HFY11’s and 2010’s average of RM235 million and RM193 million respectively. 7MFY11 sales of RM1.66 billion has reached 55 per cent of its RM3 billion 2011 target, with RM1.8b KL Eco-City bookings awaiting conversion. Similarly, Mah Sing and Gamuda are on track to achieve their 2011 sales target of RM2 billion (1H11: RM975 million) and RM1.3 billion (9MFY11: RM1 billion) respectively. The government (in partnership with private developers) is introducing more affordable housing, which should help ease need for further tightening (effectively segmentalising the property market).
• Prices to appreciate further with cost-push, scarcity (low housing starts past two years) and new demand (government policy, MRT, demographic changes
• Top picks: YTL Land, Selangor Properties, Guocoland Malaysia, and SP Setia
On a roll
We attended several launches last weekend and was positively surprised by the large turnout and strong uptake — commendable in view of the 70 per cent loan-to-value cap for third property onwards (since Nov10), interest rate hikes (+75bps since Mar10) and rising global uncertainties.
a) YTL Land’s Groove@Lake Fields semi-d (Sungai Besi, KL)
All 66 units released on Friday (for staff and VIP buyers) and 36 units on Saturday (open to the public) were snapped up within the first 1-2 hours (queue started since Wednesday). Impressive given the RM1.8m-2.7m/unit price-tag (land size: 40 x 80; built-up: 4300-5900sf) and leasehold status (ex-mining land); testament to pent-up demand for landed properties and YTL’s strong following.
b) SP Setia’s Fulton Lane condos (Melbourne)
75 per cent take-up for Phase 1 (297 units; ASP: ~A$700psf or A$365k onwards for 1-3 bedrooms of 550-1200sf), with buyers mainly parents with children studying in Melbourne. Given the overwhelming demand, Phase 2 (400 units) launch may be brought forward to Sep-Oct, likely at 10 per cent higher ASP & marketed overseas (Singapore, Australia). Key selling points: i) Prime location within Melbourne CBD (near Victoria Market, Chinatown, RMIT, Melbourne University); ii) Strong demand for apartments in central city region (low vacancy rate of 3 per cent), driven by government policy (encouraging urbanisation), immigration and housing shortage; and iii) SP Setia’s strong brand name/execution track record.
c) TA’s Damansara Avenue condos (near DesaPark City, KL)
Strong crowd at ballot exercise (229 units; built-up: 614-1905sf; ASP: RM620psf or RM380k onwards). ~70 per cent bookings with preference for smaller units (614-969sf fully sold out, 1350sf limited left).
Strong momentum across the board
SP Setia (best proxy for residential sales) raked in RM248 million sales in May, ahead of 1HFY11’s and 2010’s average of RM235 million and RM193 million respectively. 7MFY11 sales of RM1.66 billion has reached 55 per cent of its RM3 billion 2011 target, with RM1.8b KL Eco-City bookings awaiting conversion. Similarly, Mah Sing and Gamuda are on track to achieve their 2011 sales target of RM2 billion (1H11: RM975 million) and RM1.3 billion (9MFY11: RM1 billion) respectively. The government (in partnership with private developers) is introducing more affordable housing, which should help ease need for further tightening (effectively segmentalising the property market).
Credits to: www.malaysianinsider.com
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