Singapore's home prices in the fourth quarter, which saw the
strongest quarterly increase in 2012, raises further risks that
the government will introduce new measures to cool the housing
market, property consultant Colliers International said in a
According to preliminary data from the Urban Redevelopment
Authority, Singapore's private home prices rose 1.8 percent in
the fourth quarter compared to the previous three months. The
Housing and Development Board's flash estimate also showed
resale prices of public housing units rose 2.5 percent in
October-December from the third quarter.
"The increased momentum in the quarter-on-quarter price
up-trend, particularly in the mass-market housing segment, as
well as the return of buying interest in the high-tier segments,
are likely to keep the authorities high on guard again and have
further heightened policy risks in the residential sector," said
However, it noted that Singapore's private home prices rose
2.8 percent for 2012, slower than a 5.89 percent rise in 2011,
indicating the government's cooling measures have been effective
to a certain extent in moderating price growth.
CIMB Research continues to prefer developers who are less
focused on Singapore's residential market, such as CapitaLand
Ltd and UOL Group Ltd.
The brokerage expects demand to remain resilient in 2013,
although larger supply of new homes and more discounts and
residential launches could rein in prices and volumes.
CapitaLand shares were up 1.4 percent at S$3.75 while City
Developments Ltd was up 1.2 percent at S$13.03.
Property developers in Singapore outperformed the broader market
last year, with the FTSE ST Real Estate Index
jumping 47.6 percent against the Straits Times Index's
19.7 percent rise.
1210 (0410 GMT)
(Reporting by Charmian Kok in Singapore; Editing by G.Ram
9:46 STOCKS NEWS SINGAPORE-OCBC ups CityDev target price
OCBC Investment Research raised its target price for
property developer City Developments Ltd to S$14.05
from S$13.96 and kept its 'buy' rating, citing higher average
selling prices for its residential units.
By 0137 GMT, CityDev shares were up 1 percent at S$13, after
rising 44.6 percent in 2012.
OCBC noted that CityDev sold units at its latest condominium
launch, Echelon, at around S$1,700 per square foot on average,
which was above expectations.
The brokerage estimates that the breakeven for Echelon is
S$1,200 per square foot, which translates to an attractive gross
profit margin of about 40 percent for the project.
"We continue to see CityDev as the best-in-class amongst
domestic residential developers due to its strength in project
execution, ability to read the market, and its effective
risk-weighted approach to land banking," said OCBC in a report.
0938 (0138 GMT)