The next project to be started after 5-Jul-18’s cooling steps, ” The Tre Ver , marketed 140-150 units during its first weekend of launching, with typical pricing of S$1,500-1,600 psf in line with our estimates and ought to yield a good PBT margin of 17-22percent for UOL.
But, we’re somewhat disappointed in the take-up, provided over 300 cheques gathered beforehand and its aggressive pricing recently found Park Colonial.
We consider prospective buyers are maintaining their wait-and-see strategy, with a watch on two upcoming neighboring launches (Jadescape and Jui Residences) that have a lesser land price and indicate a much lower selling price compared to Tre Ver.
Also see: Tre Ver Condo in Potong Pasir
We think this launching performance could possess some little kneejerk adverse share price effect on UOL, but see any weakness to obtain the inventory in view of(1) undemanding valuations, using a P/B of 0.62x along with an RNAV reduction of 43% through 0.76x along with a 30% reduction; (2) competitively priced landbank; also (3) that the possible purchase of the remaining stake in UIC. Maintain OW.
140-150 units sold in The Tre Ver, a 99-year leasehold 729-unit mid-end condominium along Potong Pasir Avenue 1 jointly developed by UOL and its own 50.1percent -owned United Industrial Corporation (UIC). The majority of the job (52 percent ) includes 2-bedders, followed by 3-bedders (22 percent ) and 1-bedders (22 percent ).
The job is situated only 10/15 minutes’ walk from the nearest MRT stations (Potong Pasir/Woodleigh), in addition to near many colleges (St. Andrews Secondary School/Junior College, Stamford International School and Cedar Girls School) along with also the upcoming Bidadari Estate. It appreciates 220m of riverfront perspective of Kallang River.