Key reasons are ultra-low interest rates, government economic stimulus, predominant local buying and healthy household balance sheets pre-crisis. Developers’ low margins have also limited price wars.
SINGAPORE (July 14): RHB Group Research is staying “overweight” on the real estate sector, mainly on valuation grounds, with developer stocks trading at attractive 40-60% discounts to book value.
In a Monday report, analyst Vijay Natarajan says, “Despite a sharp deterioration in economic outlook, the property sector has largely remained resilient, as anticipated. “
