Fresh data points validate our POSITIVE sector view
Maintain POSITIVE sector view on Singapore property developers. Fresh data points continue to validate our call for a property price rebound. Significant premiums achieved at new launches suggest initial estimates can be sustained, calling for a strong 3.1% QoQ rise on the 1Q18 URA PPI. Consultants recently raised their forecasts and now see home prices rising by 7-15% this year. Developers can capitalize on the strengthening market by acquiring 15 residential sites currently up for tender. With significant exposure to Singapore's residential market, Bukit Sembawang and CityDev are the biggest beneficiaries of this trend.
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