Analysts cautious on Singapore property stocks

Taking a cautious approach on property stocks, DBS Vickers said that it prefers stocks with diversified exposure like CapitaLand and those with strong niche activities such as CapitaMalls Asia (CMA) and GLP.

“Though developers have adopted a quick asset turn strategy, volume momentum has nevertheless slowed and prices appear to be stabilising in recent months as the supply mechanism takes effect,” said analyst Lock Mun Yee.

According to analysts, new launches will likely remain high, while prices and rentals will be affected by the rising housing supply.

“A key factor to watch out for would be sustainability of rental yields,” added Lock.

In addition, developers’ margins are expected to normalise as land bids continue to hold up.

Source PropertyGuru – 2012 Jul 18

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