HLIB Research noted that prospects for the group are improving as all three markets – Malaysia, Singapore and China.
PETALING JAYA: The luxury residential market in Singapore is heating up, boding well for IOI Properties Group Bhd
(IOIProp), which is scheduled to launch its ultra-luxury Marina View Residences before the end of the year, says Hong Leong Investment Bank (HLIB) Research.
It said recent strong demand for a new luxury residential project launch in Singapore underscores the strong purchasing power of the people, boosting confidence for IOIProp’s upcoming launch of the project.
“Similarly, the Singapore office market hit a new record when two floors of Tong Building were sold for S$4,988 per sq ft.
“If IOI Central Boulevard were to be revalued to S$5,000 per sq ft, the building would be worth a staggering RM21bil.
“This highlights that investors are still undervaluing the building,” said HLIB Research in a report yesterday.
On Oct 5, UOL Group achieved impressive sales on the first day of its launch, selling 114 units – over 50% – of its 226-unit luxury project, Meyer Blue, in the city-state.
The average price for the units reached S$3,260 per sq ft, with two penthouses sold at S$3,420 and S$3,440 per sq ft.
“Notably, 99% of the buyers were Singaporeans and permanent residents, with one foreign buyer (a US citizen).
“This strong demand should dispel concerns about local interest in luxury residences, highlighting Singaporeans’ strong purchasing power.”
The research house said the group’s IOI Central Boulevard was valued at S$4.15bil, or S$3,220 per sq ft as of June 30.
“This would imply a potential revaluation gain of S$2.3bil (RM7.48bil), translating to an incremental RM1.36 per share, adding to its current net tangible assets of RM4.38.”HLIB Research maintains its “buy” recommendation on IOIProp with an unchanged target price of RM3.90 a share.
It noted that prospects for the group are improving as all three markets – Malaysia, Singapore and China.
“The group will also unleash significant value from its jewel assets in Singapore namely IOI Central Boulevard and Marina View Residences,” it added.
