CapitaLand's Sky Vue condo to rake in "fairly slim profit margins"

But has great stock-driving potential.

According to OCBC, "while we estimate, as a result of lower pricing, fairly slim profit margins for Sky Vue – in the low teens – we believe that a strong launch would be taken positively by the market, particularly now that the group has a total unsold exposure of over a thousand units in the Bishan locality in Sky Habitat (340 units unsold) and Sky Vue (694 units unsold)," and could lead to increased interest in the stock.

CapitaLand holds a 75% equity stake in the 694-unit Sky Vue in Bishan, Singapore, with the remainder held by Mitsubishi Estate Asia Pte. Ltd.

Sky Vue opened for previews last weekend and is priced at S$1.38k – S$1.55k psf. This is about 5%-10% lower than the adjacent Sky Habitat project (also owned by CapitaLand) and we like that the group has taken a realistic approach by pricing this project to move.

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