Greater RNAV & acceptable worth: ” We attended Sing Holdings’ Limited (SHL) condominium project, Parc Botannia , VIP Preview in the Fernvale Road showflat over the weekend. The average selling price (ASP) has been 10% greater than our previous estimate at about $1,265 psf.
In our opinion, SHL has set the Parc Botannia job to capitalize on the favorable opinion in real estate industry.
The powerful pricing reflects the programmer’s confidence in the job as well as the Singapore residential home industry. We increase our current value quote for Parc Botannia to represent the greater ASP and raise SHL’s RNAV to $0.98, and reasonable value to $0.78 accordingly. We see as the catalyst unfolds on 11 Nov 2017, Parc Botannia’s release date.
Components types and Costs are put to catch the buyers. By way of instance, the starting price for size components are retained under $1mn, to make them appealing to investors. The bigger size 3 bedroom units are priced under $1.2mn, to make them affordable to young couples and family, looking to purchase a personal property.
5 bedroom units and the 4 are geared toward families looking for comfort and more room. Finally, the units are fitted with appliances and fine finishes that provide value.
A vendors’ market: Even though there were no earnings, the preview indicate interest for your job. According to property brokers, the components will be balloted on the launching date, 11 Nov.. Customers will need to register their interest by handing over a cheque.
This agreement reflects a sellers’ market, in our opinion. We estimate that each $100 psf increase in ASP could increase SHL share of their net profit by $45mn and its reasonable value by about $0.05 per share. Danger can come from pricing by the programmer.