News Analysis: AMO Residences sold out
- AMO Residences by UOL, Singapore Land and Kheng Leong JV sold out (98.1% sales take up) on first day of launch yesterday, 23 July
- Strong interests mostly from owner occupiers attracted to its close proximity to good schools and MRT station
- Next on UOL’s launch list is Watten Estate Condominium; another site close to 2 good primary schools.
- Maintain BUY; TP of S$8.40. Strong sales for UOL’s projects could be key positive catalysts.
Almost sold out on day 1 of launch. AMO Residences by UOL, Singapore Land and Kheng Leong JV was almost sold out with 98.1% of a total of 372 units were snapped up on the first day of launch for sale yesterday, 23 July. I can’t remember when was the last time when property launches was sold out within a day, probably during the 2012 property boom.
Strong interests mostly from owner occupiers; largest penthouse sold at c.S$6m. The developer collected c.1.5k cheques before the launch was 4 times oversubscribed. We understand that the interests was so strong during the preview that each session of viewers were given a couple minutes to look at the show unit. I have friends who are still single were considering to purchase a unit there. During the VIP preview on Friday, UOL consortium sold 18.3% or 68 units and market rumour highlighted that the largest penthouse unit (2,497 sqft) at AMO Residences was sold at S$6m (c.S$2,400 to S$2500psf). We understand that most buyers are owners occupied and are attracted to its close proximity to good schools such as CHIJ St Nicholas’ Girls School and Ai Tong School and Mayflower MRT station.
ASP of S$2,100psf with estimated S$0.12 per share contribution to RNAV. We understand that average selling price achieved was c.$2,100psf, a record price given that it is located at OCR. Based on UOL consortium’s aggressive bid price for the land site in May21 at S$1,118psf, we estimate that margins could be around 15% to 20%. Our ballpark estimate of UOL’s 70% effective stake GDV to be c. S$500m or c.S$0.12 contribution to RNAV per share. We believe the strong sales momentum would be a positive catalyst for UOL.
Watten Estate Condominium, within 1km to Nanyang Primary and Raffles Girls’ Primary Schools is next on the list. UOL-led consortium went all out during the AMO Residences’ GLS land bid and won the site against 14 other bidders with a bid price that is 6% higher than the second highest bidder. UOL’s bet on parents’ zealousness to ensure that their children are able to get into a good school in Singapore has been paid off. UOL has 2 more residential landbank on its books with similar attractive metrics – an enbloc project Watten Estate Condominium and Pine Grove GLS site. The redevelopment of Watten Estate Condominium is located within 1km to two prestigious primary schools, Nanyang Primary and Raffles Girls’ Primary Schools. Pine Grove GLS site which is expected to be launched sometime in 2023 is within 1km of Henry Park Primary School and Pei Tong Primary School.
Some photos from the showunit: