Friday, July 11, 2008

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Livia Condominium @ Pasir Ris by CDL: 160 out of 200 units sold

According to news reports, more than 3,000 people turned up last weekend to view Livia, a suburban condominium project located Pasir Ris. The development is part-owned by City Developments Ltd (CDL). 160 out of the 200 units launched were sole.

DBS Vickers Research analyst, Adrian Chua, described the sales as a "strong response". He has a "buy" rating on the CDL stock. "If sale numbers continue to be sustained in coming months, it would encourage a re-rating in the property sector," Chua wrote in a note to clients yesterday.

CDL shares, which have fallen some 20 percent this year, is Singapore second largest property developer.

Livia units were sold at an average of S$650 psf, with the bulk of the demand coming from those upgrading from HDB housing. That market is strong so far because Singapore's economy is at full employment with a seasonally adjusted jobless rate of 2 percent in the first quarter. Moving forward however, with Singapore's economic growth falling to 1.9% in the second quarter, its lowest in 5 years; the buying momentum may not necessarily to be sustained. Whether Singapore's economy plunges into a technical recession this year or not, jobs in the manufacturing sector may face more layoffs and this would have direct repercussion on the sales and prices of suburban condos. (Manufacturing contributes about a quarter to Singapore's GDP.)

May also want to read:
HDB Upgraders Trapped in the 90s Boom-Bust
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase

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