While investors attribute this to residential exposure, the analysts see a mispricing of risk, particularly as residential projects have been delivering stable returns.
Shareholders of UOL Group, Hongkong Land, Guocoland and Ho Bee Land (SGX:H13
) are well-positioned to benefit significantly from restructuring their portfolio amid a lower interest rate environment, according to a report released by DBS on Singapore developers.
In the report released on Oct 18, DBS analysts Derek Tan and Tabitha Foo noted that Singapore listed property developers are trading at an average of 0.3 times to 0.4 times P/B, representing one of the biggest discounts in the past 10 years.
