SG Property: JP Morgan do not expect policy measures to be introduced in foreseeable future that will destabilize either listed property stocks or physical housing mkt. Increased supply is key to attaining equilibrium, with planned annual completions of public and private sector housing averaging 31,000 units for next decade to 2020.
Detailed housing demand-supply suggests mkt should move towards balance from 2015 onwards. House factor in either a 25% physical price correction, another round of major policy measures to be introduced in the short-term, or both. Expect stocks to trade within a range bounded at the low-end by 1 S.D below the average historical discount to RNAV. Preferred traditional SG property developer is City Developments.