Property

Property: JP Morgan expect to see marginal increase in land supply for 2H GLS program. Tip competition for land tenders to remain intense and privatization to be one of the sector catalysts. Recommoend investors Hold the REITs and trade the developers. Believe that S-REITs will provide strong div yield with stable growth prospects whilst SG developers will yield better returns at the right entry levels…..

House prefers to gain exposure to SG property space via large caps such as City Dev and CapitaLand. Also retain O/w on GLP and CMA. CapitaMall Trust remains as top pick for the REITs and see near term trading opportunities for AREIT.

Property: Deutsche sees positive trends for office. With NAV discounts widening beyond LT averages and developers' pipelines well monetised, much of the policy uncertainty may be reflected. Add that office cycle remains on uptrend and landlords could re-rate as supply tightens…..

Expect Office upcycle to continue and asset values look well supported. Landlords highlighted a steady improvement in office pre-commitment rates with developers cautiously optimistic, admist improving demand trends for industrial and firm acquisition pipelines. Preferred picks are KepLand and CapitaLand and among the REITs like AREIT and CCT.

Property: Credit Suisse expect SG govt to strike better balance between GDP growth and quality of living. Tip population growth to slow to 1-2% and GDP growth to slow to 4%. Add that 2011-14E completion of an average annual 14,500 private homes could be absorbed with immigration growth at or above 70,000 pa, (below the 150,000 average over 2005-09)….

House prefers tourism, retail plays like CDLHT, MCT, CMT and prefer developers with hospitality and prime office exposure like OUE and CDL which also trade at 29-36% discounts to RNAVs. Suggest switching out of Suntec REIT, AREIT, All Green on slower growth concerns or rich valuations.