Brokers' take

City Developments Limited (CDL) | Hold (downgrade) Fair value: S$9.59 July 9 close: S$9.62 OCBC Investment Research, July 9

We expect CDL to be one of the worst hit among the developers under our coverage. Following this latest round of stiff government cooling measures, we expect CDL's local residential sales momentum and margins to come under pressure.

We apply a significantly higher RNAV discount of 40 per cent (previously 5 per cent), as our previous thesis of CDL being a key beneficiary to the Singapore residential market upcycle given its large land bank would now likely work against it after these new measures.