Deutsche Bank notes that talk of general elections in on the cards as local newspapers reported about the Electoral Boundaries Review Committee being formed two months ago. With the general elections expected as early as September, the research house feels that property cooling measures will not likely happen until after elections. Potential changes to these measures could boost Singapore residential developers.
Deustche Bank also notes that second quarter retail rents have fallen 1% in Orchard Road. This is attributable to competition from suburban malls and online retailers as well as fewer tourists from China and Indonesia. The research house notes that market watchers expect Orchard retail rents to drop another 2.1% in 2015.
The research house has Buy calls on CapitaLand (TP:$4.20), City Developments (TP:$12.40), Global Logistics Properties (TP: $3.20), OUE (TP: $2.49) and Wing Tai (TP: $2.15).