• We recently hosted Savills senior director Mr Alan Cheong for an investor group luncheon where he shared his views on Singapore’s residential sector post the property cooling measures. Overall, Savills continues to remain upbeat on the residential price outlook, as it believes the market remains well supported by local buying demand, pent-up household liquidity, and multiplier effects from en bloc sales.
• Savills expects property prices to climb 5-12% each in 2H18 and 2019, slightly bullish when compared to our expectations of a flattish outlook (2H18) and 0-2% price increase (2019).
• Our sector Top Pick is CapitaLand.

Current Property Market Is Not in Bubble Territor

Savills noted that, based on its Relative Strength Index, the current property market is not in bubble territor. It also does not expect the market to crash in response to the latest cooling measures (see 6 Jul’s Killer Move To Curb “Euphoria” and 23 Jul’s Taking The Wind Out Of Sails for more details).

Savills’ revised pricing outlook for the primary residential market is still positive and expects prices to increase by 10-12% in 2018 and 5-10% for 2019.

Source: RHB Invest Research - 28 Aug 2018