Brokers' take

Property | Overweight CIMB Research, Dec 13

We did ground checks across nine en-bloc projects to determine the underlying strength of residential replacement demand as well as the wealth creation effect from the unlocking of capital. The findings showed that replacement appetite would help to underpin demand in the coming year, in addition to organic household formation and upgrade appetite.

We estimate private home demand to reach 11,000-12,000 in 2018 against potential launch of 10,000 units. We project private home prices to rise by up to 5 per cent in 2018. The anticipated high take-up rate should continue to propel property stocks to outperformance, in our view.