Map showing the location of Parc Botania at Fernvale Road. Source: URA
KGI Securities expects Parc Botania, a 735-unit private residential project at Fernvale Road in Sengkang, to boost Sing Holdings’ profit, reported Singapore Business Review.
This comes as the project is expected to sell well at its upcoming launch, considering the recent upturn in property sales.
Sing Holdings currently owns a 70 percent stake in the development, while the remaining 30 percent is held by Wee Hur.
KGI expects profit to reach $103 psf over the saleable area of 555,288 sq ft, or a total of $57 million.
It noted that High Park Residences, which is located right next to the project, moved 1,399 units for $988 psf within 20 months despite low property sales in 2015 and 2016.
Other developments in the area sell for between $970 psf and $1,060 psf.
“Singapore property prices have declined for consecutive 15 quarters, with home prices lower by around 12 percent from their peak in 2013,” KGI said.
“However, sentiments have started to improve lately, going by the increased transactions and slower decline of property prices in the last two quarters.”
In fact, Singapore developers sold more than 7,000 homes during the first seven months of the year, up 50 percent over the same period last year.
With this, KGI expects Sing Holdings’ revalued net asset value to stand at “$0.77 following the sale of its BizTech Centre, Robin Residences, and its private residential project at Fernvale Road”.