By Meenal Kumar
Tue, 17 Aug 2010, 09:09:44 SGT
After a quiet Jun, developers seemed to have stepped up activity ahead of the traditionally slower month-long Hungry Ghost festival period (10 Aug to 07 Sep). Launches of non-landed property units rose to 1322 units (+33.4% MoM) for Jul 2010, the highest since Apr. The launches were well-received, with Jul pre-sales increasing a whopping 88.7% MoM to 1517 units. The monthly take-up rate of 114.8% was not only the highest for the year but also beat Nov and Dec 2009 levels. Looking to Aug, launch activity is likely to be comparatively more muted during the Hungry Ghost period. Sep could be another activity-heavy month, though, with projects including City Developments’ 642-unit NV Residences slated for a 3Q10 launch. While property developers have recently reported strong 2Q CY2010 earnings and offered sanguine outlooks for 2H10; we note that anecdotally buying sentiment seems more cautious – but still very active. With a change in analyst coverage, our ratings for the property companies under our coverage are under review. Maintain NEUTRAL on the broader property sector.
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