Property counters 'overly discounted': UOB KayHian

Singapore

CONCERNS over the effect of a rise in interest rates on the property sector have been overblown and the stock market has "over-discounted" property counters for the headwinds in the residential segment, UOB KayHian says in its latest report.

Maintaining an "overweight" call on the property sector, its analysts, Vikrant Pandey and Derek Chang, said: "We expect a healthy 10-15 per cent correction (from the peak) in property prices beyond which prices should trend in line with GDP growth (1-3 per cent)."