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Further upside for developers that can turn hope to reality

Some analysts see CDL, UOL shares as best large-cap proxies to ride market recovery, while others say mid-cap stocks may go further

Published Wed, Jan 17, 2018 · 09:50 PM

Real estate

Singapore

SHARES of property developers have had a good run over 2017 in anticipation of a property market recovery; investors are now looking to the companies to deliver.

Those who can turn anticipation into reality with strong property sales and higher selling prices will even enjoy further re-rating, analysts say.

Property counters favoured by analysts are hence those supported by a robust line-up of new launches to ride the market upswing, particularly if their landbank was shored up before the spike in land prices.

DBS senior vice-president for group equity research Derek Tan believes developer stocks could rise at least 10-15 per cent.

"2018 is all about execution," he said. "Developers will have to deliver on market expectations that the strong rebound in transaction volumes will continue in 2018, translatin…