THEREALDEALS

Ins&OutsofSingaporeRealEstate

Brandedapartments
Like it or not, construction cost is an indicator of the quality of a project. As an illustration, todays mass market privateapartmentscostabout$300psfonaveragetobuild,whereasluxuryprojectscancostmorethan$700psf, easilytheprice(persqft)ofamassmarketapartment.Sinceconstructioncostisnotalwaysdivulged,ayardstickfor the quality of a project is its selling prices in the resale market. We highlight two projects that still sell at higher pricesthandevelopmentsnearbydespitebeingolder,andunsurprisingly,bothweredevelopedbySCGlobal,aname synonymouswithluxuryandquality. BothTheBoulevardResidencesandThreeThreeRobinwerecompletedin2005.Wecomparedtheirsellingpricesin thesecondarymarketwiththoseforneighbouringdevelopmentsthatwerecompleted46yearslaterandobserved that units at the two projects were consistently priced higher. We can only presume that it is because of their superior quality and the SC Global brand. In the case of The Boulevard Residences, two nearby projects were launchedafteritscompletionin2005,namely,CuscadenRoyaleandPatersonLinc,atanaveragepriceof$2,400psf and $2,700 psf, respectively, when units at The Boulevard Residences were selling in the resale market for above $3,000psf.LikewiseforThreeThreeRobin,itsunitshaveconsistentlybeensellingatover30%higherthanthenext door Proximo although both projects completed in 2005. It also sold higher than One Robin and Bellerive despite thembeingnewer,completingmuchlaterin2009and2011,respectively. ThreeThreeRobinslocationTheBoulevardResidenceslocation

Source:URA

Co.RegNo:198700034E MICA(P):090/11/2009

SEEAPPENDIXIFORIMPORTANTDISCLOSURESANDANALYSTCERTIFICATIONS

BRANDEDAPARTMENTS
3,000 2,500 2,000 1,500 1,000 500 0 23Apr04
Source:URA

TheRealDeals13October2011
Analyst:OOIYiTung6564335712ooiyitung@kimeng.com

SellingpricesofThreeThreeRobinandselectednearbyprojects
20052007: Units atThreeThree Robinconsistently soldat>30%higher thannextdoor Proximodespite bothcompletingin 2005 >2009: UnitsatThreeThreeRobinmaintain thehighest sellingpricesdespitesubsequentnewlaunches suchasOneRobinandBellerive

July2007: Record priceforThreeThree Robinat$2,195psf

ThreeThreeRobin(TOP2005) Proximo(TOP2005) OneRobin(TOP2009) Bellerive(TOP2011) 14Oct09 26Feb11

05Sep05

18Jan07

01Jun08

LookingatthehistoricalpricesforThreeThreeRobin,wenotethatitsunitswereconsistentlypricedmore than30%higherthanProximonextdoordespitebothprojectsbeingcompletedin2005.Arecordpricefor ThreeThreeRobinwasachievedinJuly2007whena1,367sqftunitontheeighthfloorwassoldfor$2,195 psf.ThisrecordstillholdstodayevenwhencomparedtosubsequentlauncheslikeOneRobinandBellerive. Amongthesefourprojects,wenotethatresaleunitsatThreeThreeRobinhavealwaysbeensoldatthe higherendofthepricerange.

SellingpricesofTheBoulevardResidencesandselectednearbyprojects
4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 11Oct02
Source:URA

BoulevardResidence(TOP2005) PatersonLinc(TOP2010) CuscadenRoyale(TOP2010)

October2007: A3bedroom unit soldfor$3,932psf

End2006/2007:LaunchofCuscaden RoyaleandPatersonLincatlower pricesthanresaleunitsofBoulevard

October2010: 7,072sqftpenthouse soldfor$4,242 psf

23Feb04

07Jul05

19Nov06

02Apr08

15Aug09

28Dec10

The brand and quality premium of The Boulevard Residences is clearly reflected in its prices when comparedtoCuscadenRoyaleandPatersonLinc,whichwerelaunchedafterTheBoulevardResidenceswas completed in 2005. A record price of $3,932 psf was achieved when a threebedroom unit was sold in October2007intheresalemarket.Noneoftheotherprojectssoldcamenearthatlevel.Anddespitethe projectbeingfiveyearsoldinOctoberlastyear,apenthouseunitwassoldforarecordbreaking$4,242psf.

MARKETSNAPSHOT

TheRealDeals13October2011
Analyst:OOIYiTung6564335712ooiyitung@kimeng.com

UpcomingVVIPLaunches ThreeBalmoral(District10)
A 40unit freehold development by Tong Eng locatedintheheartofthecity.Allunitsenjoy unobstructed panoramic view of the pristine GoodwoodHill.

PropertyPriceIndices
Index SRPIOverall(July11) RESIComposite(2Q11) URAPPI(2Q11) HDBResale(2Q11)

Change +0.2% 0.5 +2.0% +3.1%

Level 166.6 4.5 203.0 180.3

*Shhh... if you have not yet been invited, you are probablynotaVVIP.Waitforthepubliclaunch.

GovernmentLandSales(GLS)
RecentlyAwardedSites ChoaChuKangRoad/PhoenixRoad(32.3ksqm,335 units) Awarded to Far East and China Construction for $142.8m($410.5psfppr) Punggol Way / Punggol Field, EC (75.5k sqm, 720 units)AwardedtoFrasersCentrepointandKeongHong Constructionfor$219.5($270psfppr) Upper Serangoon Road / Pheng Geck Avenue (30.3k sqm, 330 units) Awarded to Tuan Sing for $185.2m ($567.3psfppr) Serangoon Garden Way (28.4k sqm, 80 units) AwardedtoCDL/HongLeongfor$105m($343.5psf) Punggol Field / Punggol Walk (48.8k sqm, 550 units) Awarded to Capital Development / ZACD for $169.6m ($323psfppr) Upper Serangoon Crescent / Upper Serangoon Road (86.2ksqm,860units)AwardedtoAllgreenfor$270.3m ($291.4psfppr) Jalan Loyang Besar / Pasir Ris Rise (36.3k sqm, 355 units) Awarded to Hoi Hup, Sunway and Straits Constructionfor$141m($361psfppr) Pasir Ris Drive 3 / Pasir Ris Link, EC (39.0k sqm, 390 units)AwardedtoHoLee/UnitedEngineersfor$122m ($291psfppr) ConfirmedList(RecentlyOpenforTender) Flora Drive (41.9k sqm, 415 units) Tender closing on 19October YishunCentral7/CanberraDrive,EC(67.9ksqm,725 units)Tenderclosingon25October ReserveList(RecentlyOpenforTender) JalanJurongKechil(14.2ksqm,240units) BuangkokDr/SengkangCentral(55ksqm,495units) TanahMerahKechilRd(39.2ksqm,470units) StirlingRoadA(44.5ksqm,445units) StirlingRoadB(44.1sqm,445units) EliasRd/PasirRisDr3(32.7ksqm,295units) HillviewAve(35.4ksqm,405units) SengkangSquare(64.4ksqm,710units) Upper Serangoon View/ Upper Serangoon Road, EC (43.3ksqm,420units)
Source:HDB,URA

Recenttransactionsoffeaturedprojects
Project Bellerive Proximo ThreeThreeRobin ThreeThreeRobin ThreeThreeRobin Bellerive Bellerive ThreeThreeRobin CuscadenRoyale Proximo ThreeThreeRobin Proximo TheBoulevardResidence ThreeThreeRobin PatersonLinc CuscadenRoyale ThreeThreeRobin OneRobin Proximo OneRobin ThreeThreeRobin CuscadenRoyale Proximo
Source:URA

Tenure Freehold Freehold Freehold Freehold Freehold Freehold Freehold Freehold Freehold Freehold Freehold Freehold Freehold Freehold Freehold Freehold Freehold Freehold Freehold Freehold Freehold Freehold Freehold

Contract month Sep11 Sep11 Aug11 Jul11 Jul11 Jul11 Jul11 Jun11 Jun11 Apr11 Apr11 Mar11 Feb11 Feb11 Dec10 Nov10 Nov10 Nov10 Nov10 Oct10 Oct10 Oct10 Oct10

Price ($psf) 1,689 1,463 1,946 1,928 1,895 1,739 1,894 1,939 2,787 1,429 1,428 1,394 3,370 1,711 2,620 2,725 1,887 1,745 1,390 1,668 1,834 2,797 1,367

PropertyStocks
Name CapitaLand CityDev HoBee HPL KepLand SingLand UOL Wheelock WingTai

Price 2.52 10 1.3 1.95 2.66 5.99 4.13 1.66 1.245

RNAV 3.97 13.27 2.76 4.41 5.25 10.42 N.A. N.A. 3.03

Disc/ Prem to RNAV 37% 25% 53% 56% 49% 43% N.A. N.A. 59%

Disc/ Premto NTA/share* NTA/share 3.18 21% 7.18 39% 2.13 39% 2.63 26% 2.72 2% 10.57 43% 6.39 35% 2.32 28% 2.25 45%

N.A.=NoCoverage*Asatlatestreported

MARKETSNAPSHOT

TheRealDeals13October2011
Analyst:OOIYiTung6564335712ooiyitung@kimeng.com

PrimaryMarket
Total no.of units No.of units soldto date Take up rate (%) Units sold (Aug) Median ($psf)

SecondaryMarket
District $psf Jul11 $psf Aug11 MoM% Change

City&Southwest(18) AscentiaSky 373 326 JoolSuites 52 39 Reflectionsat 1,129 816 KeppelBay SkylineResidences 283 175 TheUrbanite 46 18 Orchard/Tanglin/Holland(910) D'Leedon 1,715 435 TheVermonton 158 92 Cairnhill Newton/BukitTimah/Clementi(11+21)

87.4 75.0 72.3 61.8 39.1 25.4 58.2

4 16 6 16 18 14 3 9 439 22 4 11 11 13 21 11 33 11 202 26 39 72 23 151 15 14 176

1,350 1,668 1,781 1,920 1,478 1,537 2,705 2,086 1,015 1,237 1,257 1,090 1,324 1,372 1,433 1,183 929 870 898 713 1,529 686 984 1,053 905 1,314 706

City&Southwest Orchard/Tanglin/Holland Newton/BukitTimah/Clementi Balestier/MacPherson/Geylang EastCoast Changi/PasirRis Serangoon/Thomson West North

Source:URA

1,421 1,672 1,172 928 1,039 760 858 783 737

1,470 1,727 1,229 970 1,023 778 918 755 739

3.4 3.3 4.9 4.5 1.5 2.4 7.0 3.6 0.3

RentalMarket
District $psfpm Jul11 Yield $psfpm Yield % Aug11 %

BuckleyClassique 64 42 65.6 Balestier/MacPherson/Geylang(1214) Euhabitat 748 CentraLoft 47 LeRegal 88 Vacanza@East 473 EastCoast(1516) ParcBleu 55 Ubber388 95 Vibes@EastCoast 117 WaterfrontIsle 561 Changi/PasirRis(1718) Seastrand 473 Waterview 696 Serangoon/Thomson(1920) Boathouse 493 Residences AustvilleResidences 540 (EC) ParkResidences 41 Kovan Riverparc 504 Residences(EC) Terrasse 414 TheLuxurie 622 TheMinton 1,145 ThomsonGrand 361 West(2224) BlossomResidences 602 (EC) North(2528) TheMiltonia 410 Residences Woodhaven 337
Source:URA

439 46 5 349 26 41 100 480 258 553 202 311 39 394 292 151 698 121 365

58.7 97.9 5.7 73.8 47.3 43.2 85.5 85.6 54.5 79.5 41.0 57.6 95.1 78.2 70.5 24.3 61.0 41.0 60.6

City&Southwest Orchard/Tanglin/Holland Newton/BukitTimah/Clementi Balestier/MacPherson/Geylang EastCoast Changi/PasirRis Serangoon/Thomson West North

Source:URA

4.8 4.4 3.3 2.9 3.2 2.7 3.0 2.8 2.5

4.1 3.2 3.4 3.8 3.7 4.3 4.2 4.3 4.1

5.3 4.4 3.3 3.1 3.1 2.8 2.7 2.9 2.5

4.3 3.1 3.2 3.8 3.6 4.3 3.5 4.6 4.1

Top5ResaleTransactionsby$psf
Project Tenure District $psf

ArdmoreII PatersonSuites MarinaBayResidences TheClaymore TheMetz

Source:URA

Freehold Freehold 99yr(fm2005) Freehold Freehold

9 9 1 9 9

2,940 2,812 2,683 2,659 2,564

Bottom5ResaleTransactionsby$psf
Project Tenure District $psf

LakesideTower GoodviewApartments SinChuanGarden SerayaCourt AstonMansions

Source:URA

99yr(fm1975) Freehold Freehold Freehold 99yr(fm1995)

22 14 14 15 14

524 576 589 590 593

287 207

70 61.4

24 14

845 995

DEVELOPERSLANDBANK
Developer District 06 09 10 10 11 17 18 18 18 18 19 19 23 23 Sentosa 01 02 04 04 04 04 19 22 03 09 10 10 15 16 20 26 Sentosa Sentosa 02 16 02 05 09 12 12 21 09 10

TheRealDeals13October2011
Analyst:OOIYiTung6564335712ooiyitung@kimeng.com

CityDev

KepLand

CapitaLand

HoBee UOL Allgreen Wheelock

Landbank SouthBeach(BeachRoad) Futura(LeonieRoad) BoulevardHotel(CuscadenRoad) LuckyTower(GrangeRoad) BuckleyClassique(BuckleyRoad) HedgesPark(FloraRoad) NVResidences(PasirRis) PasirRisGrove,parcel3+stateland(PasirRis) PasirRisDrive8,parcels4+5(PasirRis) Tampines/UppChangiRdNorth H2OResidences(SengkangWestAve) BartleyRoadGLS(BartleyRoad) ChoaChukangGLS(EC)(ChoaChuKangDrive) SegarRoadGLS(EC)(SegarRoad) ResidencesatW(SentosaCove) TotalUnsoldUnits MarinaBaySuites(MarinaBay) Keppel&GETowerssite(TanjongPagar) ReflectionsatKeppelBay(KeppelBay) KeppelBayPlot3(KeppelBay) KeppelBayPlot4(KeppelBay) KeppelBayPlot5(KeppelBay) SengkangGLSsite(SengkangSquare) TheLakesideResidences(LakesideDrive) TotalUnsoldUnits TheInterlace(GillmanHeights) UrbanResort(CairnhillRd) Dleedon(FarrerRd) TheNassim(NassimRd) MarinePoint(MarineParade) BedokTownCentreSite(BedokCentral) BishanGLSsite(BishanStreet14) YioChuKangsite(YioChuKangRd) TotalUnsoldUnits SeascapeatSentosaCove(SentosaCove) PinnacleatSentosaCove(SentosaCove) TotalUnsoldUnits SpottiswoodeResidences(SpottiswoodePark) BedokReservoir(BedokReservoirRd) TotalUnsoldUnits Skysuites@Anson(EnggorStreet) ProjectatWestCoastRd(WestCoastRoad) RVResidences(RiverValley) RiverBay(MarThomaRd) Riviera38(MarThomaRd) TheCascadia(BukitTimahRoad) TotalUnsoldUnits ScottsSquare(ScottsRoad) Ardmore3(ArdmorePark) TotalUnsoldUnits

Tenure 99 Freehold Freehold Freehold Freehold 99 99 99 99 Freehold 99 99 99 99 99

99 Freehold 99 99 99 99 99 99

99 Freehold 99 Freehold Freehold 99 99 Freehold

99 99

Freehold 99

99 Freehold 999 999 999 Freehold

Freehold Freehold

Unsold Units 119 122 203 178 22 181 36 752 1,517 605 153 560 490 237 207 5,381 77 620 313 307 234 94 471 24 2,140 351 40 1,280 55 150 469 650 140 3,135 112 357 469 35 640 675 194 80 248 147 102 25 796 91 84 175

DEVELOPERSLANDBANK(contd)
Developer Guocoland BtSembawang District 02 10 26 09 09 09 09 15 16 16 18 18 19 19 19 27 03 09 09 10 10 11 23 10 15 17 19 9 9 9 10 Sentosa

TheRealDeals13October2011
Analyst:OOIYiTung6564335712ooiyitung@kimeng.com

FrasersCentrepoint

WingTai

MCLLand

SCGlobal

Source:HDB,URA

Landbank Tenure TanjongPagarGLSwhitesite(PeckSeah/ChoonGuan) 99 LeedonResidence(LeedonHeights) 99 TheWaterline(YioChuKangRd) Freehold TotalUnsoldUnits TheVermontonCairnhill(CairnhillRd) Freehold PatersonSuites(PatersonRd) Freehold StThomasWalk(StThomasWalk) Freehold TotalUnsoldUnits StarHubCentre 99 FlamingoValley(SiglapRd) Freehold WaterfrontGold(BedokReservoirRd) 99 WaterfrontIsle(BedokReservoirRd) 99 Seastrand(PasirRisDrive3) 99 PasirRisGLSsite(FloraDrive) 99 BoathouseResidences(UpperSerangoonRoad) 99 EsparinaResidences(Sengkang) 99 PunggolGLSmixedsite(PunggolCentral) 99 EightCourtyards(YishunAve2) 99 TotalUnsoldUnits AscentiaSky(Redhill) 99 HELIOSResidence(CairnhillCircle) Freehold BelleVueResidences(OxleyWalk) Freehold LeNouvelArdmore(ArdmorePark) Freehold Anderson18(ArdmorePark) Freehold L'VIV(NewtonRd) Freehold ForesqueResidences(PetirRoad) 99 TotalUnsoldUnits NOBHill(EweBoonRd) Freehold CasaNassau(EastCoastRd) Freehold PasirRisGLSsite(JalanLoyangBesar) 99 Terrasse(HougangAve2) 99 TotalUnsoldUnits TheMarq(PatersonHill) Freehold Hilltops(CairnhillCircle) Freehold MartinNo.38(MartinRd) Freehold TheArdmore(ArdmoreRoad) Freehold SevenPalms(SentosaCove) 99 TotalUnsoldUnits GrandTotal

Unsold Units 500 424 40 964 66 24 221 311 240 220 4 81 215 380 291 1 685 141 2,258 47 64 38 42 157 40 299 687 70 65 580 122 837 37 208 23 50 31 349 18,177

SINGAPOREDISTRICTMAP

TheRealDeals13October2011
Analyst:OOIYiTung6564335712ooiyitung@kimeng.com

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 BoatQuay,Chinatown,HavelockRoad,MarinaSquare,RafflesPlace,SuntecCity AnsonRoad,Chinatown,NeilRoad,RafflesPlace,ShentonWay,TanjongPagar AlexandraRoad,TiongBahru,Queenstown Keppel,MountFaber,Sentosa,TelokBlangah BuonaVista,Dover,PasirPanjang,WestCoast CityHall,HighStreet,NorthBridgeRoad BeachRoad,BencoolenRoad,Bugis,Rochor LittleIndia,FarrerPark,SerangoonRoad Cairnhill,Killiney,LeonieHill,Orchard,Oxley Balmoral,BukitTimah,GrangeRoad,Holland,OrchardBoulevard,RiverValley,TanglinRoad Chancery,BukitTimah,DunearnRoad,Newton Balestier,Moulmein,Novena,ToaPayoh PotongPasir,Macpherson Eunos,Geylang,Kembangan,PayaLebar Katong,MarineParade,Siglap,TanjongRhu Bayshore,Bedok,ChaiChee Changi,Loyang,PasirRis PasirRis,Simei,Tampines Hougang,Punggol,Sengkang AngMoKio,Bishan,BraddellRoad,Thomson Clementi,UpperBukitTimah,HumeAvenue BoonLay,Jurong,Tuas BukitBatok,ChoaChuKang,HillviewAvenue,UpperBukitTimah Kranji,LimChuKang,SungeiGedong,Tengah Admiralty,Woodlands Tagore,YioChuKang Admiralty,Sembawang,Yishun Seletar,YioChuKang

Source:expats2singapore.com

TheRealDeals

13October2011

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TheRealDeals

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Additionalinformationonmentionedsecuritiesisavailableonrequest. JurisdictionSpecificAdditionalDisclaimers: THISRESEARCHREPORTISSTRICTLYCONFIDENTIALTOTHERECIPIENT,MAYNOTBEDISTRIBUTEDTOTHEPRESSOROTHERMEDIA, AND MAY NOT BE REPRODUCED IN ANY FORM AND MAY NOT BE TAKEN OR TRANSMITTED INTO THE REPUBLIC OF KOREA, OR PROVIDED OR TRANSMITTED TO ANY KOREAN PERSON. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF SECURITIES LAWS IN THE REPUBLIC OF KOREA. BY ACCEPTING THIS REPORT, YOU AGREE TO BE BOUND BY THE FOREGOINGLIMITATIONS. THISRESEARCHREPORTISSTRICTLYCONFIDENTIALTOTHERECIPIENT,MAYNOTBEDISTRIBUTEDTOTHEPRESSOROTHERMEDIA, AND MAY NOT BE REPRODUCED IN ANY FORM AND MAY NOT BE TAKEN OR TRANSMITTED INTO MALAYSIA OR PROVIDED OR TRANSMITTED TO ANY MALAYSIAN PERSON. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF SECURITIESLAWSINMALAYSIA.BYACCEPTINGTHISREPORT,YOUAGREETOBEBOUNDBYTHEFOREGOINGLIMITATIONS. Withoutprejudicetotheforegoing,thereaderistonotethatadditionaldisclaimers,warningsorqualificationsmayapplyifthe readerisreceivingoraccessingthisreportinorfromotherthanSingapore. AnalystCertification: The views expressed in this research report accurately reflect the analyst's personal views about any and all of the subject securities or issuers; and no part of the research analyst's compensation was, is, or will be, directly or indirectly, related to the specificrecommendationsorviewsexpressedinthereport. 2011 Kim Eng Research Pte Ltd. All rights reserved. Except as specifically permitted, no part of this presentation may be reproducedordistributedinanymannerwithoutthepriorwrittenpermissionofKimEngResearchPte.Ltd.KimEngResearchPte. Ltd.acceptsnoliabilitywhatsoeverfortheactionsofthirdpartiesinthisrespect.

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