OCBC wary of residential sector's near-term outlook in spite of encouraging data

By Michelle Zhu / The Edge Singapore | March 18, 2019 5:16 PM SGT
SINGAPORE (Mar 18): OCBC Investment Research is maintaining “neutral” on Singapore’s residential sector despite the recent recovery in Singapore developers’ stock prices and the announcement of a new Cross Island MRT line, which helped to boost Feb m-o-m private home sales volumes by 4.4%.
The research house’s preferred sector picks remain UOL Group and CapitaLand, which are both rated “buy” with fair value estimates of $8.45 and $3.98, respectively.
In a Monday report, analyst Andy Wong says he nonetheless remains wary of the near-term outlook due to a softer macroeconomic outlook and sizeable launches expected this year, which he foresees to possibly stymie price growth even as transaction volumes are expected to gather momentum going forward.
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