SGX Market Updates

Singapore Private Property Market Shows Signs of Stabilising


PUBLISHED ON |

13 July 2017

  • Singapore’s private property market appears to be stabilising as URA’s 2Q17 flash estimates show smallest QoQ price decline of private residential property prices since 4Q13. YTD average monthly primary private home sales volumes are also 74.6% higher YoY.

  • Existing property cooling measures are likely to remain despite recent calibrated adjustments. In the medium term, MAS believes that Singapore’s property prices should be aligned with broader income trends in the local economy.

  • SGX lists six Real Estate Management & Development (GICS®) stocks with market capitalisation above S$1 billion that have substantial exposure to the Singapore property market. These six companies have an average total return of 29.2% in the year thus far.




Real Estate Sector Sub-Segment: Residential Property Market

Singapore Private Home Sales See Signs of Rebound 

Singapore private residential prices declined 0.3% QoQ in 2Q17, according to flash estimates announced by the Urban Redevelopment Authority (URA) last week. While 2Q17’s prices marked the 15th consecutive quarters of sequential decline, it was the smallest quarter price decline since 4Q13. Singapore private home prices are now 11.8% lower than the peak (last seen in 3Q13).

On primary home sales, private homes sold in Singapore by developers are seeing a pick-up in transaction volumes. Primary private home (excluding executive condominiums) sales volumes in Feb to Apr 2017 grew between 108-223% on a YoY basis (May at -3.2% YoY). The average monthly transaction volume (excluding executive condominiums) in the year-to-date is at 1,145 units, 74.6% higher than the same period a year ago.



Source: URA, SGX (data as of 12 July 2017)



Existing Cooling Measures Likely to Stay Despite Recent Adjustments

On 11 Mar 2017, the Singapore government announced a set of calibrated adjustments to the existing property cooling measures (click here), with industry participants hopeful that it signals a more accommodative policy by the government. However, in the recent media conference hosted by the Monetary Authority of Singapore (MAS), Mr. Ravi Menon (Managing Director), stated that existing property cooling measures remain necessary and it is not the time yet for easing. Mr. Menon said that the local property market has substantially stabilised over the last three years, with underlying demand for private homes remaining firm amidst a continued low interest rate environment. Over the medium-term, Mr. Menon believes that Singapore’s property prices should be aligned with broader income trends in the economy (click here).

For more, please refer to the SGX Real Estate sector presentation.



SGX-Listed Developers With Substantial Exposure to Singapore Property Market

SGX lists six Real Estate Management & Development (GICS®) stocks with market capitalisation above S$1 billion that have substantial exposure to the Singapore property market. These six companies have an average total return of 29.2% in the year thus far.

Bukit Sembawang Estates was the best performing stock in the year-to-date of the six with a total return of 47.5%, followed by Wheelock Properties (+30.6%), City Developments (+29.9%), UOL Group (+27.2%), Wing Tai Holdings (+23.2%) and United Industrial Corporation (+15.2%).

The table below details the 6 Real Estate Developer stocks with substantial exposure to the Singapore property market, sorted by market capitalisation. Click on each stock to visit its profile page on SGX StockFacts.

Name SGX
Code
Market
Cap
S$m
Price
S$
Total
Return
YTD
%
Total
Return
1 Yr
%
P/B P/B
5 Yr
Avg
Dvd
Ind Yld
%
City Developments C09 9,693 10.64 29.9 30.8 1.1 0.9 0.8
UOL Group U14 6,114 7.46 27.2 36.7 0.7 0.6 2.0
United Industrial Corp U06 4,511 3.16 15.2 17.3 0.7 0.7 1.0
Wheelock Properties M35 2,238 1.87 30.6 33.3 0.7 0.6 3.2
Bukit Sembawang Estates B61 1,698 6.61 47.5 47.6 1.3 1.0 0.6
Wing Tai Hldgs W05 1,528 1.99 24.8 23.2 0.5 0.4 1.5
Average 29.2 31.5 0.8 0.7 1.5

Source: SGX, Bloomberg & SGX StockFacts (data as of 12 July 2017)




Previous Market Updates on the Real Estate Sector






This article is provided by SGX My Gateway.



SGX My Gateway

SGX's investor education portal with market, product and investment information and events. Sign up now at sgx.com/mygateway to receive our investment updates and economic calendar.

This document is not intended for distribution to, or for use by or to be acted on by any person or entity located in any jurisdiction where such distribution, use or action would be contrary to applicable laws or regulations or would subject Singapore Exchange Limited (“SGX”) to any registration or licensing requirement. This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document is for general circulation only. It does not address the specific investment objectives, financial situation or particular needs of any person. Advice should be sought from a financial adviser regarding the suitability of any investment product before investing or adopting any investment strategies. Use of and/or reliance on this document is entirely at the reader’s own risk. Further information on this investment product may be obtained from www.sgx.com. Investment products are subject to significant investment risks, including the possible loss of the principal amount invested. Past performance of investment products is not indicative of their future performance. Examples provided are for illustrative purposes only. While each of SGX and its affiliates (collectively, the SGX Group Companies) have taken reasonable care to ensure the accuracy and completeness of the information provided, each of the SGX Group Companies disclaims any and all guarantees, representations and warranties, expressed or implied, in relation to this document and shall not be responsible or liable (whether under contract, tort (including negligence) or otherwise) for any loss or damage of any kind (whether direct, indirect or consequential losses or other economic loss of any kind, including without limitation loss of profit, loss of reputation and loss of opportunity) suffered or incurred by any person due to any omission, error, inaccuracy, incompleteness, or otherwise, any reliance on such information, or arising from and/or in connection with this document. The information in this document may have been obtained via third party sources and which have not been independently verified by any SGX Group Company. No SGX Group Company endorses or shall be liable for the content of information provided by third parties. The SGX Group Companies may deal in investment products in the usual course of their business, and may be on the opposite side of any trades. SGX is an exempt financial adviser under the Financial Advisers Act (Cap. 110) of Singapore. The information in this document is subject to change without notice. This document shall not be reproduced, republished, uploaded, linked, posted, transmitted, adapted, copied, translated, modified, edited or otherwise displayed or distributed in any manner without SGX’s prior written consent.












SGX Stock / REIT Search

Advertisement

Trust Bank God Of Fortune Referral Code PGKPSWAE Trust Bank Referral Code 🎁

Advertisement