Singapore Property Plays

Hi everyone, its Amirah again welcome back! We’ve made some changes to our video I don’t know if you’ve noticed but we hope
you like them. If you have any ideas on how we can further improve them please
let us know down below in the comments So just diving right in this time we
think it’s a great time to be looking for property developers. Singapore’s
property related companies have performed well this year, shares of the
largest Singapore developers including CapitaLand, City Developments and UOL Group have gained between 16% and 31% year-to-date. The positive
momentum in Singapore’s property sector was reinforced last week
with the latest data published by the Urban Redevelopment Authority (URA). Developers sold a total of 1270 private homes in September, the highest monthly sales since the latest round of cooling measures were implemented in July last year. Home sales in September was 30% higher than last month, and a staggering 36% higher than September last
year. The resilience in Singapore’s new home sales have been driven by better
housing affordability – the price to income ratio has improved to around 7x this year, an improvement from 9x in 2010. This has mainly
been driven by rising household incomes but we think it’s still not too late to
join the party yet! Despite the good performance of the property developers,
we still see further upside to their share prices as valuations are not that
expensive. Many of them are trading below or near
their five-year P/B averages. Among our blue-chip favorites are City Developments, CapitaLand and UOL as mentioned. CapitaLand’s 5 percent premium
to its 5Y P/B average may seem relatively expensive but we expect
its share price to re-rate as it achieves it’s 9%-11% ROE targets,
following the S$11bn acquisition of Ascendas-Singbridge. The bigger entity is now one of Asia’s largest diversified real-estate players with more than S$123
billion worth of AUM Meanwhile, City Developments is in the
process of restructuring its hotel business with the privatization of its
London listed Millennium & Copthorn. Last but not least, UOL is the cheapest
among the big three trading at a 35% discount to its book value, and it should benefit from its control of United industrial Corp (UIC), and the potential redevelopment of the Marina square properties. That’s all from me today, we hope we’ve given you some ideas for this week. If you haven’t yet, remember to subscribe down below, give it a like and
share this video, it means a lot to us. Thanks for watching and we’ll see you
next week.

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