REITS: In a report released by Deutsche bank, it notes that the ST REIT index fell 4.2% to a 52-week low as the US$ rose to S$1.41. It notes that the residential sector appears to be picking up with 1,594 units sold in July. With the hungry ghost month potentially impacting August sales, Deutsche expects more aggressive launch schedules post election to help improve sentiment.
Given recent corrections to property prices, the government has maintained a watchful eye to ensure that there is a soft landing for housing prices. With the general elections coming soon, developers are expected to delay new property launches, hoping that the government will loosen cooling measures. However, as maintained just now, cooling measures would not be relaxed in the near term.
In terms of REITs, Deutsche has Buy ratings on Keppel DC REIT (TP: $1.15), CapitaLand Mall Trust (TP: $2.30), and a Sell call on Suntec REIT (TP: $1.65).
Property developers wise, Deutsche has Buy ratings on CapitaLand (TP: $4.20), City Developments (TP: $12.40), Global Logistics Properties (TP: $3.20), Overseas Union Enterprise (TP: $2.41), and Wing Tai (TP: $2.15).
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