Downgrade sector to NEUTRAL from Overweight. CapitaLand is our Top Pick. Our channel checks show the latest policy measures seem to have achieved the objective of curbing the exuberance in the property sector. Developers are seen adjusting their price expectations in launches. Post measures, we expect transaction volumes for 2018 to fall by 10% (from 10- 15% rise) and prices to stay flattish for 2H18-2019. Developers margins are expected to be squeezed to 0-15%, depending on land cost. Separately, the increasing threat from continued build-up in supply pipeline - posed by the "red hot" enbloc market - is expected to subside. Read More