Keppel Land’s The Luxurie at Seng Kang already 80% sold

While penthouse and ground floor units have been fully sold since its preview last Friday.

DMG says the key selling point for the project is its close proximity to the MRT.

Here’s more from DMG:

Good turnout reflects underlying housing demand. Over the weekend, we paid a visit to the first day of the official launch of The Luxurie at Seng Kang by Keppel Land (99-yr LH, 622 units, TOP FY16). Evident was the good turnout for the showflat, as well as healthy take-up with c.200 sales translating to 80% take- up for launched units achieved, with penthouse and ground floor units fully sold, since preview from Friday a week before (according to sales agents at c. 4pm in the evening).

We think apart from the good location at close proximity to the MRT, this good turnout also reaffirms our view that in the near term residential prices are likely to be firm due to i) a short term supply deficiency; ii) the current low interest rate environment which supports residential purchases backed by underlying demand and iii) positive carry (we were quoted rental yields of 4.8% for this project).

For Keppel Land, we incorporate contributions from this project into our RNAV and raise target price to S$4.68 as well as FY12 earnings to 518.8m with BUY recommendation maintained on deep value. Any potential hike in the interest rate environment emains the key risk to the sector in our view, but is likely to remain low for now.

The Luxurie@Seng Kang. This 10 block (15-storey) residential development with 42 stacks is located at the junction of Compassvale Road and Compassvale Drive, and just beside the Seng Kang MRT station with retail mall Compass Point in close proximity.

Pricing in line with comparables, healthy take-up expected. Apart from the good location, we believe another key selling point for the project is the location of the project within 1 km radius of Nan Chiau Primary School. Bankers quoted preferential mortgage rates of 3M SIBOR + 0.6% for the first year, 3M SIBOR + 0.6% thereafter which translates to c.1% mortgage interest rate offered to buyers which we think is likely to buoy buying by potential private home seekers. We believe the pricing for the project at ASP c.S$1,000 psf is fair and slightly attractive, given similar price level with close comparable H20 Residences by CDL but with a more favourable location at walking distance to the Seng Kang MRT. All in, we expect a healthy take-up for this project.

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