Look to diversified developers as property sales slow, says CGS-CIMB

By Stanislaus Jude Chan / The Edge Singapore | October 3, 2018 4:00 PM SGT
SINGAPORE (Oct 2): CGS-CIMB Research is keeping its “neutral” stance on property developers amid slowing sales at new launches, following a slew of new property cooling measures introduced in July to curb rising home prices.
“As property stocks’ performance has historically shown a high correlation to take-up rates, the slower sell-through rates mean property stocks are likely to trade range bound in the near term,” says analyst Lock Mun Yee in a Monday report.
According to Lock, ongoing projects marketed over the past 2-3 months post the July cooling measures saw a slower take-up rate. But, she adds, these projects continued to garner consistent sales traction.
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