Brokers' take

Singapore property | Overweight CIMB Research, March 15

MARKET sentiment appears to have improved following the adjustment of the sellers' stamp duty from March 11, although the impact would likely to be felt from the medium term. We expect at least three more new projects to be rolled out in H1 2017. Hence, we anticipate primary market volume transactions to remain fairly buoyant over the next few months. However, we think price recovery is likely to lag given the current elevated inventory and vacancy levels. Property stocks are currently trading at 30 per cent discount to RNAV (revalued net asset value) on improved market newsflow and potential M&A activities. We think catalysts such as increased landbanking could emerge as the market continues to digest existing high inventory. We maintain our overweight stance with our top picks of UOL, CityDev, CapitaLand and Wing Tai. Downside risk to sector call includes higher than projected interest rate hike which would erode affordability and a slower than projected economic growth.

Singapore banks Citi Research, March 15