It also enjoys an upward trend in office rents and hotel revPAR.
UOL could bolster its market sentiment after the cooling measures through the attractive launch of Tre Ver, DBS Equity Research and OCBC Investment Research (OIR) said.
DBS also believes that the firm will be less impacted as it is the earliest to land bank at a lower price, giving the company more room in pricing its properties.
“All of its land banks except Silat Avenue were acquired in 2016,” DBS noted. “In addition, upward trends in office rents and hotel revenue per available room (revPAR) bode well for UOL’s office and hotel investment properties.”
Meanwhile, OIR mentioned that UOLalso saw a successful launch for its Thomson in September 2013 when Singapore also implemented an Additional Buyer’s Stamp Duty (ABSD) hike in January and introduction of the Total Debt Servicing Ratio (TDSR) in June.
“160 units were sold on the first weekend of launch, whilst a total of 330 units found buyers by end of October that year (including the first weekend sales),” OIR explained.
Aside from Tre Ver, the firm is targeting to launch Nanak Mansions and Silat Avenue by 2019.
UOL profits jumped 21% YoY to $132.67m in Q2 from $109.21m whilst its revenue grew by 59% to $635.45m from $399.09m last year.
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