CapitaLand, KepLand likely to benefit from Beijing's rate cut

Singapore

TWO Singapore developers CapitaLand and Keppel Land are touted by analysts as potential beneficiaries of Beijing's latest lending rate cut, given their exposure to the Chinese residential market.

A targeted relaxation of mortgage rates and home purchase restrictions in China this year, coupled with the lowering of interest rates, could make housing more affordable and boost buyer sentiment ahead, analysts reckon.

DBS analyst Derek Tan noted that Beijing's interest rate cut "could be a potential inflection point to help sustain the recovery in (residential) sales seen in the latest October statistics".

Property sales in China marked a 1.6 per cent drop in terms of floor space in October, which was seen as a moderation from September's 10.3 per cent fall. This followed announcements by the Chinese government in September to prop up the sluggish prop…