Time to switch out of developer stocks?

SUBDUED sales at the recent launch of two condominium projects in Serangoon, in the north-east of Singapore, have stoked concerns that buying momentum may be running out of steam. But there are others who expect the momentum to pick up again after the typical lull period of June, which coincides with the school holidays.

Depending on which camp equity investors fall into, they could either see this as a time to switch out of residential-centric property stocks or to accumulate on recent share price dips.

Should investors start pricing in the risk of slower sales ahead or anticipating a pick-up in buying momentum and prices from here?

If analyst reports are of any guide, many are still keeping "buy" calls on developer stocks or initiating "buy" ratings on m…