CITY DEVELOPMENTS

CITY DEVELOPMENTS | BUY

TARGET PRICE: $15.40

MARCH 8 CLOSE: $12.94

DBS Group Research, March 8

We maintain our buy call on CityDev with target price of $15.40 as we fine-tune our residential sales and investment property valuation assumptions.

With the Singapore property market in the nascent stages of an upturn, CityDev is largely seen as a key proxy to upward trends in the Singapore residential market and has historically traded up to 1.2-1.3 times price to net asset value, which our target price implies.

Based on our analysis, CityDev is the developer with the largest amount of unsold inventory on the books, estimated at close to $6 billion comprising about 3,600 units.

These properties are located across various segments of the property market, which allow the group to capture the widest market share this year. The strong pre-sales of upcoming launch, The Tapestry, will be a catalyst for further re-rating.

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