No one's buying new: Zero units sold at new Sentosa properties

Ho Bee takes a beating as its 1Q12 revenue dives 51% due to unsold units at its newly completed and existing residential projects.

In a statement, CIMB said that the developer was unable to sell any new units at Turquoise and Seascape, its latest completed projects in Sentosa. Some 60% of unsold Turquoise units, however, have been leased.

A portion of the unsold units at Seascape is being marketed for leasing, of which some leases have been secured at S$12k/mth (est. 4% yield on cost).

Ho Bee’s 1Q12 investment property revenue dived 32% yoy after divestments as the group continues to expect sluggish demand for high-end residential projects.

The analyst said the languishing Sentosa residential sales “remain an overhang despite a strong balance sheet with a low net gearing of 0.26x” and the addition of rental income from the leased Turquoise units.

The developer, however, is optimistic for a turnaround in 2Q12 as unit sales at the One Pemimpin industrial project is recognized.

The divestment of an investment property, One Tannery, is also seen to prop up earnings with a gain of S$18m in 2Q12.

Also Read

One Sophia sells 30% of units at weekend launch

SLA launches tender to revitalise Tanjong Katong Complex

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit