By Credit Sussie
The Urban Redevelopment Authority (URA) draft master plan 2008 contains no boost for Singapore property developers, says Credit Suisse. "For landowners/investors who have expected plot ratio increases for their land parcels, the latest draft master plan would have disappointed," says broker in note. Adds, "the government echoed our view that the property market has peaked and it expects property prices to moderate as supply comes on to offset demand over the next one-two years." But says plan does give clearer direction for medium-term, reinforces government vision of improving quality of life, providing pro-business environment with emphasis shifting from Marina Bay to surrounding areas of Jurong lake, Kallang riverside and Paya Lebar. Broker maintains Underweight rating on Singapore property sector.
By Goldman Sach
Singapore''s property developers won''t enjoy a supply crunch or one-off gains from higher plot ratios on existing landbank, Goldman Sachs says after release of Urban Redevelopment Authority''s 2008 draft Master Plan. "This scenario reinforces our view that the recent period of acute supply shortages and rapidly rising rents and capital values will not be repeated. We are sticking to our stand that across different property asset classes, what we are seeing is consolidation not sharp declines as we stay positive on Singapore''s being a structural growth story." Says city-state''s "bulking up" to offer growth opportunities for sector-leading REITs such as CapitaMall (C38U.SG), CapitaCommercial Trust (C61U.SG), CDL Hospitality Trusts (J85.SG). Adds, however, opportunities to take awhile to materialize, developers still must deal with current negative sentiment on residential property
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