Stock Name: SCGlobal
Company Name: SC GLOBAL DEVELOPMENTS LTD
Company Name: SC GLOBAL DEVELOPMENTS LTD
| Research House: Kim Eng | Price Call: HOLD | Target Price: 1.05 |
Kim Eng Securities has downgraded luxury property developer SC Global Developments to hold from buy and cut its target price to $1.05 from $2.37.
The latest move by Singapore to make buyers who are not Singapore citizens or permanent residents pay an additional 10% stamp duty when they buy a home, has dimmed the outlook for the luxury home market, where non-locals form the majority of buyers.
The latest move by Singapore to make buyers who are not Singapore citizens or permanent residents pay an additional 10% stamp duty when they buy a home, has dimmed the outlook for the luxury home market, where non-locals form the majority of buyers.
“Although SC Global’s current depressed valuation suggests that the adverse impact of the new cooling measures might have been priced in, we remain wary of luxury developers as negative sentiment continues to swirl around the residential property market,” said Kim Eng in a report.
The brokerage has also cut its average selling price estimate for Hilltops, one of SC Global’s developments, by 10%, as sales were at a standstill.
At 11:02 a.m., shares of SC Global were up 2% at $1.00, and have plunged about 40% since the start of the year.
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