Property: Feb home sales was a slow 430 units, or 301 units excluding EC sales. The 301 units was 5% down m/m, 23% down y/y, due to low launches and the festive period.
CIMB expects March to be better showing, and maintains its FY16 expectations of 8000 to 9000 units.
Meanwhile, private residential prices should continue slipping 5-8% in 2016 on the back of peaking housing completions.
With no policy reversal anticipated in the near term, developer stocks will likely be range bound. The house prefers stocks with strong earnings visibility and attractive valuations. The house’s top picks are City Dev, UOL, and CapitaLand.
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