KGI Securities anticipates Parc Botania, an elegant 735-unit private residential development conveniently located at Fernvale Road in Sengkang, to lift Sing Holdings’ profit, stated Singapore Business Review in their report.
This comes as the development is anticipated to sell well at its forthcoming launch, bearing in mind the current upturn in property sales.
Sing Holdings presently owns a 70% stake in the development, whereas the outstanding 30% is held by Wee Hur.
KGI supposes profit to attain $103 psf over the profitable area of 555,288 square feet, or an overall of $57 million.
It’s indicated that High Park Residences, which is situated right next to the development, boosted 1,399 units for $988 psf inside 20 months regardless of low property sales in year 2015 and 2016.
Other projects in the district sell for amid $970 psf and $1,060 psf.
“Singapore property amounts have lessened for the following 15 quarters, with home values lower by around 12% from their top in year 2013,” said the KGI.
“Nevertheless, sentiments have begun to improve recently, going by the raised transactions and gradual drop of property amounts in the last two quarters.”
As a matter of fact, Singapore developers sold over 7,000 homes throughout the first 7 months of the year, up to 50% over very similar period in the previous year.
With this, KGI anticipates Sing Holdings’ increased net asset price to stand at “$0.77 succeeding the sale of its Robin Residences, BizTech Centre and its private residential development at Fernvale Road”.
