by winston » Wed Apr 20, 2016 11:22 am
Singapore Property - Implications of lower interest rates | POSITIVE
We see positive implications on property developers with the recent reversal in benchmark interest rates:
1) lower cap rates for properties and higher unit prices for REITs;
2) stronger home buying demand; and
3) lower borrowing costs for developers could make it easier to finance monetization deals.
We update our RNAVs and raise TPs by 3-9%.
We cut Wing Tai to HOLD as upside appears limited.
While we retain our BUY rating for CityDev, its strong share price performance implies that its upside is now less attractive.
Hence, we advocate a switch to sector laggard CapitaLand.
Ho Bee remains a BUY.
Source: Kim Eng
It's all about "how much you made when you were right" & "how little you lost when you were wrong"