
Market to be mildly negative on HDB launch, says analyst
The announcement is in line with HDB's latest policy of large launches to reduce odds of disappointment for applicants.
OCBC Investment Research noted:
Yesterday, HDB announced a bumper crop of more than 8,200 flats under a joint build-to-order (BTO) and Sale of Balance Flats (SBF) launch. We believe that the market would be mildly negative on this development. This is the largest single supply of HDB flats in a single launch - in line with HDB's latest policy of large launches to reduce odds of disappointment for applicants. Including an anticipated launch of another 4,200 flats in Nov 11, the total 2011 supply cumulates to 28K, 12% more than the 25K target cited in May 11. In addition, we expect at least another 25K of BTO supply in 2012. We believe this provides increased headwinds for the private residential sector, especially for mass-market projects as buyers at the margin shift to BTO flats from private alternatives. |