For the residential market, we see news flow and activity this year dominated by the highend segment. Unlike the mass- to mid-segments, where prices have rebounded to peak levels, high-end prices are still around 5-150% below peak and demand should be supported by the improving economic outlook, low interest rates and rising foreigner participation. We expect modest growth for the low-end segment (+3%), with government policy more restrictive and pent-up demand largely consumed, and a larger 6-12% upside for high-end prices. With declining inventory levels, most developers are actively looking to restock,resulting in fairly aggressive bids for recent GLS land tenders. With more sites to be made available for the 2H10 GLS, we expect bidding to be more rational and potentially more NAV accretive.
Its pick in the residential sector: Allgreen for its exposure to the upper- and mid–residential segment.