- We visited OSK
Property sales gallery over the weekend to gauge the interest in its latest instalment
– called Solstice - at Pangaea in Cyberjaya. Recall that Pangaea is built on 16
acres of freehold commercial land comprising residential and commercial
properties. The first phase called
Paragon – comprising SOFO suites and retail shops - was fully sold.
- Solstice comprises
946 units of service apartments to be built over two blocks although only one
block was open for sale. Out of the total 457 units on offer, we gather 70% of
the units were snatched up with an average pricing of RM600psf.
- Types of units that
are on sale include:- (i) 1bedroom suite (450sf) priced at RM290kRM320k (ii) 3 bedroom suite (893sf) priced at
RM550k-RM580k and (iii) duplex suite (980sf) priced at RM560k to RM620k – with
the 1 bedroom-suite making up bulk of the units.
- Encouraged by the
strong response, we understand the developer intends to open Block 2 for sale
next month.
- However, it is not
surprising that the take-up has been strong despite the stiff competition within
the area. OSK Property is offering a slew of incentives: (1) low entry cost at
RM300kRM550k, (2) up to 5%-7% early bird discount depending on the floor of the
units, (3) attractive financing where DiBS are offered, (4) the units are
partially furnished and (5) RM8,888 cash rebates upon completion.
- All in, despite the
weak sentiment, the right products at the right location would see strong demand
due to strong urbanisation and an accommodative interest rate environment. Hence,
we maintain our OVERWEIGHT stance on the property sector because current valuations
are depressed with property stocks trading at
a deep discount of 40%-50% to NAVs. New sales guidance by developers are
very much intact and we believe there will be a return of pent-up demand in
properties.
- We expect the
market to re-rate established township players such as IJM Land (FV:RM3.80/share)
and Mah Sing (FV: RM3.60/share) with
Bandar Rimbayu and Southville City as key developments to drive sales.
- Meanwhile, we have
HOLD recommendations on Sunway Bhd, Bandar Raya Developments and S P Setia.
Source: AmeSecurities
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