This is following the quiet months of November and December 2023, when new project launches tapered off. While the Singapore property developers (FSTREH Index) saw a strong rebound of about 8% in the past two months, since the lows back in late October 2023, it underperformed S-REITs, which ran up by 15%.
DBS Group Research is in the view that City Developments Limited (SGX:C09
) (CDL) is a proxy to the Singapore residential market. The research house has “buy” call and $10.50 target price on the stock, as analyst Rachel Tan notes that there was a positive correlation between share prices and a strong showing at new residential launches in seven out of 11 occurrences since 2018. Tan expects to see a similar trend in the coming months.
In a Jan 22 report, Tan notes that the coming two weekends will see the launch of more than about 1,000 new residential units across three projects, mainly in the Outside Central Region (OCR), with more to come in Feb 24, bringing attention back to the property developers.
