DBS Vickers says activity in Singapore’s property market is expected to fizzle out after Friday’s policy measures. “The recent round of cooling measures...including a sharp hike in Sellers’ Stamp Duty and a lower loan to value ratio, are likely to dampen market transactions over the next few months as buying confidence and longer holding period force buyers to re-evaluate their purchasing decisions.” 

House says developers are likely to re-time launches, hurting overall market sentiment. House’s base case sees home prices rising 0%-3% this year, with a flattening out of low- and mid-end prices and a gradual recovery in the upper end segment. 

 

House tips primary sales at 10,000 units vs 16,357 in 2010 and recommends commercial plays, with the sector trading at 18% discount to RNAV, just below the long-term average discount. 

 

Still, house likes stocks with greater office exposure such as UOL (U14.SG), Singland (S30.SG) and Keppel Land (K17.SG), all Buy-rated. It keeps Capitaland (C31.SG) at Buy, “as its diversified business model will give it an all round exposure to various non-residential segment.”