CapitaLand domestic sales seen to ease in FY14

See what will drive the slowdown.

CapitaLand has rebounded in FY13, selling closed to four times the residential home units it sold in the first nine months of FY13 compared to the same period last year, but OCBC reckons FY14 will see this sales rally simmer.

The research firm notes that in the first nine months of FY13, the group sold an impressive 1151 residential home units in Singapore versus just 329 units in the same period the previous year. 38% of YTD sales were from the Sky Vue launch, which saw 433 units (out of a total 694 units) sold at a median selling price of S$1.4k psf.

CapitaLand also made progress in selling major projects Sky Habitat, d’Leedon and The Interlace which are 34%, 82% and 80% sold, respectively, as at end Sep 13.

"After a lackluster FY12 in terms of domestic residential sales, we are positive on management’s focus on realistic pricing and generating sales," says OCBC in a market pulse report following the release of CapitaLand's 3Q13 results.

"With significant uncertainty in the residential space and 1239 unsold units in its pipeline, we see the group’s FY14 domestic sales likely easing from current levels," it adds.