CGS-CIMB analyst Lock Mun Yee is keeping her "overweight" call on the local property sector, which she believes is still "inexpensive".

According to the most recent monthly numbers released by the Urban Redevelopment Authority, a total of 470 units were sold. If executive condominiums were excluded, a total of 432 units were moved, up 10% over January, but down 20% over Feb 2022.

Including Jan 2023, a total of new 825 units have been sold for the first two months of the year, down 33% y-o-y.

"Although it has been a relatively slow start to the year, we believe sales momentum could pick up with a number of launches in the pipeline," writes Lock in her March 15 report.

Citing property consultants, Lock says that there are four projects - Blossoms by the Park, The Reserve Residences, Tembusu Grand and The Continuum that could be launched over the next two months.

These projects have a total of 2,459 units.

<span class='see_also_inread'><b>See also: <a class='gtm_see_also_1_inread' style='text-decoration: underline;' href='/capital/brokers-calls/boustead-singapore-big-bold-and-beautiful-says-ocbc?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>Boustead Singapore is 'big, bold and beautiful', says OCBC</a></b></span>

From Lock's perspective, the valuation of the developers under her coverage still look inexpensive, trading at an average 47% discount to their revalued NAV, which is below the long term mean discount.

"We prefer developers with visible residential pipelines and strong balance sheets that would enable them to tap into any opportunity during this slower cycle," she writes.

Lock has the same "add" call on her three preferred picks for this sector. They are Capitaland Investment, with a $4.50 price target; City Developments, with a $8.97 price target and UOL Group, with a target price of $8.

As at 3.46 pm, CLI was up 2.31% to trade at $3.55; CDL was up 1.12% to $7.22 and UOL Group up 2% to $6.62.

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