Why Keppel Land's impressive China sales could be short-lived

No thanks to cooling measures.

According to Phillip Securities Research, the pace of recovery in China continued in 1Q13 with 850 units sold, compared to 690 units sold in 4Q12 and 190 units in 1Q12.

However, it believes the strong recovery is likely to moderate in 2Q13 following the new Chinese’s central government reemphasized in early April on the enforcement of capital gains tax and higher down payment for second home purchase in certain cities. 

Here's more:

Residential sales in Singapore were slightly higher at 45 units compared to 38 units in 1Q12, mainly came from The Luxurie which had been 100% sold at ASP of $1,050psf.

In order to maintain its sales volume, we believe Keppel Land will roll out its landbank site at Tanah Merah soon. Corals at Keppel Bay (Keppel Bay plot 3) could be rolled out too in 2H13 if market sentiment improves further.