The Motley Fool Singapore
Are APAC Realty Ltd and Propnex Ltd Cheap Now?
Singapore’s real estate market was erratic in 2018. Initial optimism in the first half of the year sent private property prices up nearly 10%, with en-bloc fever hitting the country. However, in a shock turn of events, the announcement of additional property cooling measures in July 2018 by the Singapore government killed the optimism. Unsurprisingly, investors reacted by selling down the two publicly-listed real estate brokerage firms, PropNex Ltd (SGX: OYY) and APAC Realty Ltd (SGX: CLN). These two companies now trade some 33% and 65% below their respective highs. However, in my view, the steep sell-down seems harsh, considering the dominant market positions of the companies and long-term resilience of Singapore’s real estate market. Additionally, some analysts still expect