Europe’s debt crisis suggests interest rates likely to remain low for longer than initially expected, which should help sustain demand for Singapore private homes, says OCBC Investment Research, according to Dow Jones.

Adds developers’ depleting land banks not big concern as Singapore government has slew of land parcels available for sale in 2H10.

“As new government land sales sites could be launched as soon as six to seven months after being awarded, we believe that there are still opportunities available for developers to ride on the current upcycle of the property market,” says OCBC.

Notes competition for residential sites still aggressive, evident in 15 bids received for recent tender for land parcel near Potong Pasir MRT station, signalling “bullish view of property developers.”

Rates Keppel Land (K17.SG), UOL Group (U14.SG), Soilbuild (K6M.SG) at Buy with respective targets of $4.18, $5.33, $0.88.