Keppel Land faces "muted" Singapore residential sales in 2014

But China prospects remain robust.

Keppel Land suffered a 14% decline in residential unit sales in FY 2013, with the group only selling 370 residential units, mostly derived from Corals at Keppel Bay and The Glades. The company likely won't fare better in FY 2014 according to OCBC Investment Research.

"We expect another muted year in Singapore, given the uncertain residential outlook currently, and the bulk of Keppel Land’s FY14 sales would likely come from its 500-unit Tiong Bahru project (to be launched in 1H14)."

"MBFC Tower 3 is now 95% committed with an average WALE of eight years. We understand that management is comfortable with conditions in the CBD office market currently, and would be willing to divest and recycle capital when the right offer comes along," it added.

On the flipside, Keppel Land's China residential sales reached 3,900 units, up 135% in FY 2013, mostly from The Botanica (Chengdu), The Springdale and Seasons Residence in Shanghai and Stamford City (Jiangyin).

"Though we note that sales in 4Q13 dipped 30% QoQ to 800 units, management indicated that they continue to see fairly solid housing fundamentals on the ground," said the research firm.