Investor sentiment towards property developers has “markedly improved”, say the DBS analysts in an Oct 7 report, and they expect this momentum to continue. “Key catalysts include regulatory support for capital market reforms, developers’ ability to unlock value through asset divestments and redevelopments, and consistently strong pre-sales in residential projects offering robust income visibility in the coming years.”
Singapore property developers have staged a robust comeback this year, and this momentum appears poised to continue, say DBS Group Research analysts Derek Tan and Tabitha Foo.
Despite a close to 50% year-to-date run in share prices, developers’ price-to-book (P/B) valuations remain at 0.5x, representing a 60% discount to revised net asset value (RNAV).
