Centurion has minimal competitive advantage

Construction companies, which have the highest dependency ratio across industries, have been facing intense cost pressures in recent years due to rising labour costs. In an industry with a cost-conscious clientele, the differing factor between accommodation operators will inevitably center on price and prices offered are extremely competitive. Location is a moot point as dormitories are located in similar suburban areas based on URA’s zoning plans. Centurion has little competitive advantage over its peers. Consequently, I do not forsee Centurion gaining market share over its competitors – future growth will be contingent on macro level factors.

Singapore dormitory supply to increase by 43.4%, size of workforce to remain flat

There are currently 42 approved dormitories providing a total of 230,000 beds. 9 new purpose-built dormitories, providing about 100,000 beds will be constructed over the coming two years (2015-16) which will increase industry supply by 43.......