According to JP Morgan, the consortium could launch the Hougang site at an average selling price (ASP) of $2,300 psf for the residential portion at which level, the margins are estimated at 10%. “Pre-tax margins may rise to 17% at ASP of $2,500 psf for Hougang residential. The site acquisition anchors UOL’s landbank into 2027,” the JP Morgan report says.
On Jan 26, JP Morgan raised its price target for UOL Group to $12.05, from $10.15 previously. UOL has a few strong trailwinds, the report says.
The Singapore residential property market remains underpinned by stable demand and UOL has acquired some plum sites. On Jan 14, UOL along with CapitaLand Development (CLD) and CapitaLand Integrated Commercial Trust were awarded the tender for the Hougang Central Government Land Sales (GLS) site for approximately $1.5 billion or $1,179 per square foot (sq ft) per plot ratio.
