- There were a few launches and previews that took place over the weekend. Sime's latest offering at Denai Alam, called Saffron Hills, comprising 188 terraced units with lot sizes of 22x75 and average build-ups of 2,500sf, has seen a strong take-up. Out of the 188 units, only 104 units were opened for sale and were fully sold via a balloting process last weekend. We gather that the starting price was at RM698k for the intermediate units, while corner lots were going for RM1.1mil.  

- We understand that Sime initially planned to sell 65 units over the weekend, but given the overwhelming response, it had decided on 104 units. Given the strong take-up, we will not be surprised if Sime decides to release the remaining 84 units by the end of the year.

- Despite being located quite a distance from the city centre, Denai Alam has been a popular township. The main selling point is the low-density feature, where there are only 8 units per acre vs. the typical 12-14 units per acre. It is also located just 6km away from the vibrant Kota Damansara township. Further upside would be driven by the Damansara-Shah Alam Elevated Expressway, should approval be granted by the authorities.

- Meanwhile, in Melawati, Sime had a soft launch for 'The Veo' (GDV:RM335mil), which is located next to Sunway Montana. There are three types of units:- (1) Studio bedroom ' 753sf, (2) 3+1 bedroom ' 1441sf, (3) 4+1 bedroom ' 2,271sf, and (4) Duplex units ' 3,000sf-3,600sf.

- There are 350 condominium units on offer, where only one block was opened for sale. Out of the 175 units available, Sime managed to lock in about 60% bookings with an average selling price of RM680psf. 

- Regardless of the slightly steep pricing, the development is located just 20 minutes away from the city centre and is well-connected via several major highways, namely MRR2 and DUKE. Plus the appeal of the area would be enhanced by the opening of shopping mall (NLA: 635,000sf) within the Melawati commercial area which is to be co-developed by CapitaMalls Asia and Sime Darby. 

- We maintain our OVERWEIGHT stance on the property sector because current valuations are depressed with property stocks trading at a deep discount of 40%-50% to NAVs. New sales guidance by developers is very much intact and we believe there will be a return of pent-up demand in properties.

- We expect the market to re-rate established township players such as IJM Land FV:RM3.80/share) and Mah Sing (FV: RM3.60/share) with  Bandar Rimbayu and Southville City as key developments to drive sales.