Singapore’s year-to-date residential sales volume “appears to have stabilised” and property prices are expected to decline at a slower pace, DBS says in a property sector report on Thursday.
Overall, 1,388 residential units were sold in May 2016, an 8% increase compared to the previous month, and up 63% from the 853 units sold in May last year.
Sales of private homes surged 64% y-o-y in May to 1,056 units, boosted by new property launches Gem Residences and Stars of Kovan.
Meanwhile, executive condominium sales grew 58% y-o-y to 332 units despite no new EC launches in the month.
Year-to-date, a total of 4,915 units have been sold, up 27% y-o-y.
“With the government keeping land supply low, we believe the property prices will decline at a slower pace. A potential positive catalyst that could rerate the sector is the relaxation of property policies,” says DBS lead analyst Rachel Tan.
DBS highlighted CapitaLand, City Developments, and UOL Group as the top picks for the sector.
All three were kept at “buy” by DBS, with a target price of $3.70 for CapitaLand, $9.60 for CityDev, and $7.39 for UOL Group.
On Thursday, CapitaLand closed 1% lower at $2.96, City Developments closed 0.23% lower at $8.75, and UOL Group closed 0.37% lower at $5.41.
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Overall, 1,388 residential units were sold in May 2016, an 8% increase compared to the previous month, and up 63% from the 853 units sold in May last year.
Sales of private homes surged 64% y-o-y in May to 1,056 units, boosted by new property launches Gem Residences and Stars of Kovan.
Meanwhile, executive condominium sales grew 58% y-o-y to 332 units despite no new EC launches in the month.
Year-to-date, a total of 4,915 units have been sold, up 27% y-o-y.
“With the government keeping land supply low, we believe the property prices will decline at a slower pace. A potential positive catalyst that could rerate the sector is the relaxation of property policies,” says DBS lead analyst Rachel Tan.
DBS highlighted CapitaLand, City Developments, and UOL Group as the top picks for the sector.
All three were kept at “buy” by DBS, with a target price of $3.70 for CapitaLand, $9.60 for CityDev, and $7.39 for UOL Group.
On Thursday, CapitaLand closed 1% lower at $2.96, City Developments closed 0.23% lower at $8.75, and UOL Group closed 0.37% lower at $5.41.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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