Admin 506 13 Oct, 2016
Market Outlook – Singapore Property Sector by Phillip Securities Research
• Normalised HDB Supply until 2018 expected to be sufficient to meet demand - after record low supply from 2006-2010. Limited land sales for ECs to limit supply from 2017. • Private Property: Improved sales volume in recent quarters driven mainly by Rest of Central Region (RCR) and Outside Central Region (OCR); sales mix is likely to continue. • Stubborn inventory of unsold units is likely to deter upside in average selling prices. • RCR properties appear to be most attractive based on current gross yield and historical price performance. • Growing vacancy rates and more completions on the back of weaker market puts pressure on overall rental market. • Performance of Singapore residential properties lag behind foreign markets. • Share price performance of developers is primarily affected by sales volume but no major catalyst in sight. • We have an "Underweight" view on the Singapore Property Sector.