Singapore property demand remains “intact” despite “mediocre” take-ups of launches of two condos in the Serangoon area, UOB KayHian said.
At the Affinity at Serangoon project, take-up was 37.3 percent and 10.6 percent of total units sold, while The Garden Residences, located minutes away, sold in excess of 9.8 percent of its total inventory, the brokerage said in a note on Tuesday, adding that compared with other recent launches seeing 70-85 percent take-up
“We believe this is due to the side-by-side competition and concurrent launches, wide plethora of upcoming launches, as well as possible ripple from high-speed rail abandonment (which may have raised some near-term pricing concerns),” it said. “Buyers who are patient are also aware of the wide plethora of new homes launching in the second half of 2018, and are therefore making longer deliberations.”
Despite the “subdued” launches, UOB KayHian said it expected home-buying activity would pick up in the second half of the year. It kept an Overweight on the sector.
It tipped City Developments and Wing Tai as its key picks, rating both at Buy, with target prices of S$14.03 and S$2.78 respectively.
Shares of City Developments ended Wednesday up 1.22 percent at S$11.62 and Wing Tai was up 0.49 percent at S$2.06.