We view UOL Group (SGX:U14) as a key beneficiary of Singapore’s resilient housing market amid the material decline in interest rates.
Resilient home prices and stronger than expected volume growth.
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Meanwhile, transaction volumes have been robust, with developers selling 10,299 private residential property units for 10M25, representing y-o-y growth of 171%. This has already exceeded our full year volume forecast of 7,000-8,000 units, although there are unlikely any new launches for the rest of the year.
Brisk sales momentum for UOL’s recent new launches.
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Given the healthy sales momentum, UOL has sought to replenish its landbank with the successful award of a government land sales (GLS) site at Dorset Road for S$524.3m (S$1,338 psf per plot ratio (ppr)), and also completed the S$810m en bloc acquisition of Thomson View Condominium which translates to an attractive acquisition cost of S$1,178 psf ppr. This is expected to be redeveloped into a sizeable 1,240- unit project with slated launch in 2Q26.
Raise our revenue forecast and fair value estimate.
Read more at SGinvestors.io.
Above is an excerpt from a report by OCBC Investment Research. Clients of OCBC Securities may be the first to access the full PDF report @ https://www.iocbc.com/.
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