SINGAPORE (Sept 19): Singapore’s property market received a boost from resale transactions in light of flagging primary sales in August, says DBS.
The lack of major launches contributed to 58% lower month-on-month and 17% lower year-on-year primary sales. Of the 805 units sold, only 473 comprised of private residential units which were not executive condominium.
However, the total overall transactions for August surpassed any total since 2013, with 1,621 property transactions. This was driven by a 30% on-year rise in resale transactions to 787 units, mostly from major relaunches such as The Interlace, D’Leedon and OUE Twin Peaks.
While the property market looks like it is on the uptrend, the takeup of upcoming launches will be key for determining buyer sentiment, warns Tan. There is currently a number of residential projects launching in the coming months including, AlPs residence, Forest Woods and The Cement Canopy by MCC Land, City Developments and United Overseas Land respectively.
“Healthy takeup rates during the launches will be seen by the market as sign of a further stabilisation of the property sector,” says Tan.
Tan believes that City Developments will continue to perform well in light of the stablising Singapore property market, while Capitaland and UOL Group has diversified income streams, strong balance sheets and catalysts from asset-recycling.
DBS Research has issued a “buy” rating for City Developments, Capitaland and UOL, with the target price of S$9.90, S$3.60 and S$7.20 respectively.
Shares for City Developments traded down 0.34% at S$8.83, while Capitaland traded flat at S$3.12 and UOL traded up 0.91% at S$5.56 as of 11.21am. — theedgemarkets.com.sg
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