Roxy Pacific’s latest River Valley condo expected to follow Martin Modern’s pricing strategy: Religare

Roxy Pacific’s latest River Valley condo expected to follow Martin Modern’s pricing strategy: Religare

PC Lee
08/08/17, 02:14 pm

SINGAPORE (Aug 8): Roxy Pacific’s pricing strategy for its latest planned River Valley freehold condo should follow Martin Modern, says Religare Capital Markets.

Only a 10-min walk away, Guocoland’s luxury project is now selling at $2,000-$2,500 psf and sold 15% out of 450 units when launched on July 22.

In a Monday night filing, Roxy Pacific announced it plans to redevelop a freehold plot in River Valley Road which it has acquired for $110 million, into an apartment block of at least 18 stories with more than 100 units.

The price paid for the 28,798 sqft site opposite the freehold Yong An Park Condo works out to about $1,582 psf ppr, inclusive of an estimated development charge of $17.6 million, says Religare.

“At a land price of $1,582 psf ppr, we estimate the breakeven price of this project could be as high as ~$2,200 psf ppr, and selling price could fetch circa $2,500v psf,” says analyst Tata Goeyardi.

As a comparison, Yong An Park Condo, a much older project with large unit sizes, is asking for $1,400-$1,900 psf in the resale market.

“We believe Roxy’s pricing strategy should follow Martin Modern, however, Guocoland only paid $1,239 psf ppr for Martin Modern’s land,” adds Goeyardi.

As at 2.08pm, shares in Roxy Pacific are up 0.5 cent at 50.5 cents.

SembMarine's management confident of order pipeline despite stiff competition

SINGAPORE (July 23): To stay relevant, Sembcorp Marine's transforming itself to take on large scale EPC (engineering, procurement and construction) projects and offering nimble and compact solutions to customers, says CIMB-CGS Securities. It is also scouting for new technology and intellectual property to widen its service offering, preparing for the rig recovery, says CIMB-CGS, with the latest acquisition of Sevan Marine cylindrical rigs is a case in point. In a Friday report, analyst Lin Siew Khee says CIMB-CGS was right to expect a loss of $20 million-$40 million for 2Q18 as SembMarin....

After a steady 2Q, will CapitaLand Mall Trust still have room to run?

SINGAPORE (July 23): OCBC Investment Research and CGS-CIMB Securities have downgraded their ratings on CapitaLand Mall Trust (CMT) to “hold” from “buy” and “add” previously after the trust’s 2Q18 results came in line with both research houses’ expectations. While OCBC has revised its fair value estimate down to $2.10 from $2.26 after lowering its terminal growth rate assumption to 1.5% from 2% in light of ongoing macroeconomic uncertainties, CGS-CIMB’s lower target price of $2.21 compared to $2.25 previously comes on the back of a higher risk-free rate to align with that o....

City Developments cut to ‘neutral’ on expected slowdown in Singapore properties and Brexit woes

SINGAPORE (July 23): Expected slowdown in demand for Singapore’s residential properties due to the recent cooling measures and gloomy near-term outlook for UK projects from slow progress of Brexit negotiations have forced RHB to downgrade City Developments to “neutral” from “buy” with $10.50 target price. From RHB’s latest estimates, CityDev has unsold residential inventory in Singapore of around 3,300 units, with Singapore residential segment accounting for 25% of its RNAV estimate. RHB expects the latest round of property cooling measures to adversely impact margins at its dev....
Investing opportunities in 2H2018 amid trade war, STI selldown

SINGAPORE (July 19): Just the day before The Edge Singapore’s 2018 mid-year investment forum took