Foreign buyers are back. The recently-launched One Devonshire project has almost sold out at an average price of S$1,770psf, with locals buying most of the units. However, management has noted a sharp increase in foreign buyers, predominantly from Indonesia, Malaysia and China.
No plans to increase landbank. Allgreen has an inventory of about 1,009 units from its unsold landbank in Singapore and plans to sell them in the next two years. Management has no plans to acquire land as it believes land prices are high at the moment and that it has sufficient inventory, the triggering of a Government Land Sale site is expected to spark interest among most developers.
Healthy occupancy levels at investment properties. Allgreen’s retail space is fully occupied with Tanglin Mall fetching S$8.60psf pm. The occupancy levels for its office space and serviced apartments are 92% and 80% respectively with average office rentals of S$6.70psf and serviced apartments fetching about S$9,000/month. Hotel occupancy levels were down at 60% but management believes the slowdown is temporary and expects things to improve later this year.
Maintain BUY. We continue to see good value in Allgreen and maintain BUY with a target price of S$1.40 pegged at parity to 2009 RNAV.
Sponsored Links
Comments
No response to “All Green - Foreign buyers are back.”
Post Comments (Atom)
Post a Comment |
Post a Comment