Hi Bintang,

Many thanks for your reply n analysis.

I wish u well n we HUAT together.

Cheers

Sweet :)

Based on the news and research report, Allgreen is very well positioned to capitalise on rising sentiment for mass-mid-tier properties.

Sep 14, 2009

Government is banning interest absorption scheme (IAS) and interest-only housing loans (IOL) with immediate effect, i.e. Sept 14, 2009. This measure will apply to all private residential projects. The only exception will be uncompleted private residential projects where units had already been offered for sale under IAS before Sept 14.

'It is in everyone's interest to have a steady property market where prices move stably in line with economic fundamentals. If excessive speculation develops and a property bubble forms, eventually a severe correction must take place,' Mr Mah said in his speech.

Demand for uncompleted private housing units has picked up strongly since February, and the proportion of buyers sub-selling their units has increased.

Developers sold 10,000 units in the first seven months of this year, more than the 4,300 units sold for the whole of 2008. At this take-up rate, the total sales for 2009 may well exceed the historical high of 14,800 units in 2007, Mr Mah warned.

Allgreen - Insights from company visit (CIMB 28 August 2009), maintain Outperform

One Devonshire.

This project was launched in 2Q09 to extremely strong take-up. ASP achieved is S$1,800psf. To date, only three units are unsold in the 152-unit project. Management guided that the buyer profile is healthy, with a good mix of locals and foreigners. Most had taken up the Progressive Payment Scheme (PPS) as opposed to the Interest Absorption Scheme (IAS) and the Deferred Payment Scheme (DPS). We believe this bodes well for the quality of demand. So far, no purchase options have been returned.

Viva.

Over 84% of this project has been sold since its official launch in August. ASPs range from S$1,550 to S$1,600psf. We believe such prices are one of the highest among neighbouring projects. Interestingly, management guided that more buyers have taken up DPS compared to One Devonshire, at 60-70% of the total take-up. Proceeds from initial sales have yet to be recognised.

Holland Residences.

Allgreen plans to launch this project in 3Q-4Q09. Management is targeting ASPs of S$1,550-,600psf, a premium to recent sales such as The Verdure (S$1,400psf) and Lush on Holland Hill (S$1,500psf). We believe one reason for the optimistic pricing is the unit size. Management guided that units in this project will consist largely of smaller flats of 400-700sf, limiting the cost per unit to S$600,000-S$1.1m. Management believes that current demand for properties in the area istrending towards these types of product. We are positive that demand will be good. However, we are less comfortable about potential speculative demand if the units are resized.

Cascadia.

Over 30% of this project was initially sold to the MGPA fund in 2007 for S$1,550psf. Allgreen plans to launch this project to the public this year at ASPs of S$1,300-1,500psf. Management believes these are currently the fair value in the Bukit Timah area. Construction of Phases 1 and 2 is underway with completion due in 2010.

Suites at Orchard. This is located at Handy Road, close to the Plaza Singapura Shopping Centre. Allgreen aims to launch the project this year. Our ground checks Indicate that show flats are being prepared. While no guidance has been given on pricing, we believe that final ASPs are unlikely to be low. Units in nearby Sophia Residences are going for S$1,600-1,700psf. We expect ASPs for Suites at Orchard to be benchmarked to this range.

Hi Bintang,

How r u?

I have this counter in my CPF investment, good FA n potential, I m holding this for as long as the long-term trend is up.