“Our strategy for developers would be to prefer those with high recurring cashflow base and strong balance sheets that would enable them to tap any opportunities during this slower cycle,” she adds.
SINGAPORE (June 25): CGS-CIMB is maintaining the property and development sector at “overweight” with CapitaLand, City Developments, and UOL as top picks after a total of 12 land sites were released by the government land sale programme (GLS) for 2H20.
“Developers’ valuations are attractive, trading at 54% discount to RNAV, close to the -2 standard deviation (s.d.) discount to long term mean,” says analyst Lock Mun Yee in a note dated June 24.
