Singapore Stock Market News

Singapore Real Estate - Are We Nearing The Peak Of The En Bloc Cycle?

StockFanatic
Publish date: Wed, 11 Apr 2018, 05:17 PM
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While the en bloc market has staged a stellar comeback since May 2017, we believe that the current cycle is nearing its peak and is expected to slow down by 2H. Key reasons for this are steady build up in supply pipeline, rising land costs, tighter policy framework and sufficient restocking of landbank. Moving ahead, we expect developers to be selective in their bids with preferences for relatively smaller and well-located sites. Overall, we expect property prices to jump 5-10% YoY in 2018, but we remain cautious on a longer-term sustainability of such price increases. Maintain OVERWEIGHT, with APAC Realty and CapitaLand as Top Picks.
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