Singapore property

Singapore property | Positive

Maybank Kim Eng, April 10 Fresh data points continue to validate our call for a property price rebound.

New launches this year have achieved significant premiums over comparable projects launched in recent years. The price rebound appears to be broad-based with strong performance across all market segments.

There are 15 residential sites up for tender today which could add 4,900 units to the pipeline for developers. These deals represent significant revenue opportunities that developers can pursue to capitalise on the market rebound. Most developers in Singapore have a net gearing of less than 1.0 time, which implies significant balance-sheet capacity to pursue growth opportunities.

With significant exposure to Singapore's residential market, Bukit Sembawang Estates and City Developments Ltd are the biggest beneficiaries of this trend.

A word of caution has to be said about a supply build-up in 2021 estimates. With enbloc deals since 2017 potentially adding 20,000 units in their new properties, we see private housing supply rising to over 17,000 units in 2021. As such, we believe the market could focus on potential weakness from late-2020.

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