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CGS-CIMB is 'overweight' on Singapore property development sector as developers' valuations still 'inexpensive'

Chloe Lim
Chloe Lim6/9/2022 01:38 PM GMT+08  • 4 min read
CGS-CIMB is 'overweight' on Singapore property development sector as developers' valuations still 'inexpensive'
The 3,505 residential units for the 2H2022 are 12.5% higher than the 2,785 units released in the 1H2022 as the government seeks to address the dwindling unsold inventory situation
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CGS-CIMB Group Research analyst Lock Mun Yee has kept an “overweight” call on the Singapore property development sector, as the analyst sees Singapore developers’ valuations as still inexpensive.

At their current share prices, the developers are trading at a 42% discount to their RNAV, close to 1 standard deviation below the long term mean discount.

The analyst’s recommendation comes after the government released 14 confirmed and reserve land sites for 7,310 residential units (3,505 confirmed, 3,805 reserved), 94,750 sq m GFA of commercial space and 530 hotel rooms under its government land sale (GLS) programme for the 2H2022 on June 7.

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