TEE Land

TEE Land: NRA Capital initiated coverage with an Overweight rating and TP of $0.48 (60% upside), based on an optimistic longer-term view on the Singapore residential property market. Although NRA believes Singapore residential property will be weak in the short-term after 8 rounds of cooling measures, the Singapore government’s long-term goal is to maintain stable prices. House expects to see more price correction in the near term due to the following factors: 1) rising interest rates will put downward pressure on demand, 2) the high number of new residential completions in the next 3 years (200,000 new supply units by 2016) will help ease the demand, and 3) the government’s new cooling measures, specifically the Total Debt Servicing Ratio (TDSR) that has limited the purchasing power of investors.