This follows on the successful launches of UOL’s UpperHouse project at Orchard Boulevard in July, with 212 caveats lodged out of 301 units; and ParkTown Residence in Tampines North in February, with 1,109 caveats lodged out of 1,193 units.
Given the healthy sales momentum, UOL has sought to replenish its landbank with the successful award of a government land sales (GLS) site at Dorset Road for $524.3 million, or $1,338 psf per plot ratio (ppr).
UOL also completed the $810 million en bloc acquisition of Thomson View Condominium, which translates to an “attractive” acquisition cost of $1,178 psf ppr. This is expected to be redeveloped into a “sizeable” 1,240-unit project with slated launch in 2Q2026, according to OCBC.
Resilient housing market
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“We view UOL as a key beneficiary of Singapore’s resilient housing market amid the material decline in interest rates,” says OCBC.
The three-month compounded Singapore Overnight Rate Average (Sora) has declined from 3.07% as at end-2024 to 1.24% as at Nov 17.
Singapore’s URA private residential property price index rose 2.7% for 9M2025 as compared to the end-2024 level, and remains on track to come in at the higher end of OCBC’s 2%-4% full-year forecast.
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Meanwhile, transaction volumes have been robust, with developers selling 10,299 private residential property units for 10M2025, notes OCBC, representing 171% y-o-y growth.
“This has already exceeded our full-year volume forecast of 7,000 to 8,000 units, though there are unlikely any new launches for the rest of the year,” adds OCBC.
Peer comparison
After taking into account UOL’s “solid” sales transactions, OCBC analysts have raised their patmi forecasts for FY2026 by 5.4% and narrowed their revalued net asset value discount to 36% from 45%.
In addition to a “buy” call, OCBC analysts have raised their target price on UOL to $10.06 from $8.65 previously.
UOL has a Dec 31 financial year end. According to OCBC, UOL has a smaller FY2025 price-to-earnings multiple (P/E) of 19.6 times compared to peers CapitaLand Investment (21.4 times), City Developments (23 times) and Hongkong Land (22.3 times).
As at 3.45pm, shares in Straits Times Index constituent UOL are trading 8 cents lower, or 0.93% down, at $8.57. UOL shares have gained some 66% year to date.
