Singapore Stock Market News

Singapore Developers - DETERIORATING from Stable

StockFanatic
Publish date: Thu, 28 Nov 2013, 11:05 AM
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2014: Shift towards home oversupply begins

Investment thesis
We are turning more cautious on the Singapore residential market given oversupply risk. We expect the era of supply shortage to end by 2015, due to a combination of rising completed supply and easing pent-up demand. Unsold inventory has risen since 3Q13 as developers race to launch products ahead of home price weakness.

This also reflects declines in demand due to the effects of the seven cooling measures. Looking into 2014/15, demand growth could stay under pressure given potential interest rate increases and slower economic growth, as well as tighter immigration policies.
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