Credit Suisse says Singapore government’s 1H11 land sale programme neutral for residential, positive for office, hotels.

“While the government released another aggressive land sale program for 1H11, with a total residential supply of 14,300 units, 3.0% above the 2H10 record, the confirmed list was similar to 2H10’s 8,125 units, suggesting that the government does not want prices to collapse from oversupply.”

But research house reckons government set to issue more demand-side measures, should mass market, HDB prices continue to escalate; could include stamp duty, capital gains tax, lowering LTV further, raising cash component.

Adds, GLS more supportive to office asset values, as only one new CBD site put on Confirmed List, 2 new hotel sites made available, albeit via Reserve List, pointing to low risk of oversupply.

Credit Suisse has Outperforms on office, hospitality proxies: OUE (LJ3.SG), City Developments (C09.SG), CapitaCommercial Trust (C61U.SG), K-REIT (K71U.SG), CDL Hospitality Trusts (J85.SG).