Singapore Property - Maybank Kim Eng 2017-07-06: Hong Kong Marketing Feedback

Singapore Property - Maybank Kim Eng 2017-07-06: Hong Kong Marketing Feedback Singapore Property S-REIT CITY DEVELOPMENTS LIMITED C09.SI UOL GROUP LIMITED U14.SI CAPITALAND COMMERCIAL TRUST C61U.SI KEPPEL REIT K71U.SI ASCENDAS REAL ESTATE INV TRUST A17U.SI

Singapore Property - Hong Kong Marketing Feedback


On the supply outlook and other policy measures 



Hesitant to chase developer stocks 

  • While there was little push back on our POSITIVE stance on Property Developers (Singapore Property: Price Inflection Point; U/G to POSITIVE, dated 29 May 2017), we sense that clients are hesitant to raise exposure aggressively following the strong YTD rally for developer stocks.
  • Nonetheless, we continue to see an upwards bias for developer stocks and reiterate that an impending rebound in home prices is a sector catalyst to watch. 
  • Other discussion points around our view on policy measures, participation of foreign capital, redevelopment activities amidst elevated land prices and M&A deals in the sector. Investors agree that despite a still weak rental market, downside risks to home prices will be mitigated by ample liquidity and healthy affordability ratios.


Strong asset values for offices a consensus view 

  • Investors agree that an improving supply outlook and the sharp fall in office rents in recent years suggest that downside may be limited. However, questions were raised about the overall demand outlook, changing tenant profiles and the impact of flight to quality on older properties. 
  • We note that there is consensus that high replacement cost of office buildings (due to elevated land prices) and keen interest in office assets will continue to support valuations of office REITs.


Focus on the logistics industrial sub-segment 





Derrick Heng CFA Maybank Kim Eng | Chua Su Tye Maybank Kim Eng | http://www.maybank-ke.com.sg/ 2017-07-06
Maybank Kim Eng SGX Stock Analyst Report BUY Maintain BUY 12.050 Same 12.050
BUY Maintain BUY 9.050 Same 9.050
BUY Maintain BUY 1.810 Same 1.810
BUY Maintain BUY 1.180 Same 1.180
BUY Maintain BUY 2.900 Same 2.900



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