Strong demand and tight supply in Singapore’s property market has seen APAC Realty double both its earnings and revenue for the 1HFY2021 ended June 30. This volume transaction upswing is expected to continue for the company, writes CGS-CIMB Research analyst Lock Mun Yee.

In an Aug 13 note Lock is maintaining “add” on the company, with a raised target price of 96 cents, up from 94 cents previously. The new target price represents a 7.8% upside.

“Given the low interest rate environment and declining quantum of unsold inventory, we believe that buying interest should remain strong. With the majority of these projects located in the city fringe and suburban areas, we believe these projects are likely to be well-received when marketed, in our view. As such, we believe APAC’s performance should continue to benefit from the volume transaction upswing,” says Lock.

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