As MAS sounds warning, will property stocks get hit?

Property stocks have been on a tear this year, lifted by low starting valuations and growing signs that a recovery in the property market was unfolding. And, boosting their landbanks through en bloc deals was viewed positively by the market, even if the sites were being acquired at lofty prices.
Among the more prolific acquirers was Oxley Holdings. In fact, if all its en bloc deals go through, it will have the largest potential landbank of any local developer. Notably, Oxley led a consortium of four developers, including KSH Holdings and Lian Beng Group, to acquire Rio Casa for $575 million. Oxley also acquired Serangoon Ville for $499 million with KSH Holdings and Lian Beng Group. Most recently, in mid-November, Oxley announced that it had won the bid for Mayfair Gardens for $311 million.
Oxley Holdings purchased Mayfair Gardens for $311 million (Credit Picture: The Edge Singapore/EdgeProp Singapore)
Eric Low, deputy CEO of Oxley, said in a recent interview that the developer acquires land based on a “good set of market intelligence and feasibility studies”, and that mitigates “a big chunk of the risk”. Even so, the prices that Oxley would have to achieve for the redeveloped sites in order to turn a profit might give some investors pause. For instance, the price tag for Mayfair Gardens works out to $1,244 psf per plot ratio (ppr), and Oxley is likely to have to price the new development at $1,700 psf in order to break even, some analysts say. Yet, prices at The Blossomvale, a neighbouring freehold property, were averaging only $1,300 psf until October, when they rose to $1,493 psf.
Elsewhere in the market, SingHaiyi Group acquired a development called Sun Rosier in September through a joint venture (JV) at $271 million. That works out to $1,325 psf ppr for the 146,000 sq ft site located off Bartley Road in District 19. Some market watchers say SingHaiyi will only be able to break even if it prices the redeveloped property at around $2,000 psf, which would be a record for that district.
Correction coming?
Now, with the Monetary Authority of Singapore warning this past week that banks, developers and potential property buyers...