Company Name: CAPITALAND LIMITED
| Research House: DMG | Price Call: HOLD | Target Price: 3.03 |
DMG & Partners said the latest residential property project by Southeast Asia's largest property developer, CapitaLand, in Singapore's suburb of Bishan was priced at a lower than expected level.
The broker said the Sky Habitat project, designed by well known architect Moshe Safdie, was priced at between $1,642-1,747 per square foot (psf) which was priced at between $1,642-1,747 per square foot (psf) which was below market expectations of $1,700-1,800 per square foot.
“We believe the take up for the initial project launch is somewhat below our expectations given the good location of the project, and the initial achieved average selling prices are also at the lower end of market expectations of $1,700-S$1,800 psf,” DMG said in a report.
Singapore property prices have rebounded sharply from the steep fall during the global financial crisis in 2009 and record low interest rates have boosted demand.
DMG maintained its neutral rating on CapitaLand with a target price of $3.03 a share. The shares eased 0.3% to $2.94 and have jumped about 33% so far this year, more than double the rise in the broader market.
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