Buoyed by strong demand for new homes, the property development and investment sector is set to carry “stable” volume demand into 2021 despite the pandemic, says CGS-CIMB Research analyst Lock Mun Yee. 

Lock is maintaining “overweight” on the sector, highlighting preferred picks CapitaLand, City Developments and UOL Group. Lock recommends “add” on all three companies, with target prices $3.42 for CapitaLand, $10.10 for City Developments and $7.60 on UOL Group. 

“December 2020 new home sales rose 130% y-o-y and 54% m-o-m to 1,265 units,” highlights Lock in a Jan 15 note. “We project home sales of 9,000 [to] 10,000 and 0-5% hike in home prices in 2021F.”

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