Brokers' take

APAC Realty | Buy (maintained) Target price: S$0.65 Aug 6 close: S$0.515 RHB Research Institute, Aug 6

For 2H 2019, ERA secured a project marketing role for 26 projects (about 10,520 units), slightly higher than 1H 2019. While the take-up rate (opening weekend) at new launches slowed to 10-30 per cent (from >30 per cent), the strong new launch pipeline has helped in maintaining overall transaction volumes, which we expect to be similar to last year's (about 9,000 units).

Private resale market volume also improved (+27 per cent quarter-on-quarter), but was down 50 per cent year-on-year in 1H 2019 due to exceptionally strong resale activity prior to the cooling measures last year. We expect new sales and private resale volumes to improve slightly (5-10 per cent higher) in 2H 2019.