CLSA remains Underweight Singapore residential property

Stock Name: Capitaland
Company Name: CAPITALAND LIMITED
Research House: CLSA

CLSA remains Underweight on the Singapore residential property sector as it says “policy risk is here to stay.” It notes, although recent launches have shown signs of moderation, “we still see encouraging sales. This makes us stay cautious on the possibility of another round of cooling measures.” Hence, we prefer developers who have higher exposure to more resilient segments, i.e. office, hospitality and retail. 

 

The house likes Keppel Land (K17.SG), rated Buy with a $5.25 target, Fraser and Neave (F99.SG), rated Outperform with a $6.95 target and CapitaLand (C31.SG), also Outperform with a $4.77 target. KepLand is down 0.2% at $4.25, F&N is off 0.5% at $5.77, CapLand is off 0.3% at $3.36.