As authorities keep a close eye on the residential market after flash estimates for the Singapore property price index (PPI) in 4Q2020 point to a 2.1% y-o-y growth, Jefferies analyst Krishna Guha recommends investors accumulate shares in City Developments Limited (CDL) and Wing Tai Holdings.

Guha, in a Jan 18 report, rated both counters at “buy” with target prices of $11 and $2.40 respectively, due to their attractive valuation, diversified revenue sources and potential growth in net asset value (NAV) on the repositioning of assets and capital recycling.

Referring to the statement made by Deputy Prime Minister Heng Swee Keat on Jan 18, that the government does not want to see “the property market run ahead of the underlying economic fundamentals”, Guha says the comments may mean that the authorities are considering another round of cooling measures.

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