We visited showflats for two new launches in Dhoby Ghaut (prime) and Farrer Park (mass). Turnout for both projects was moderate, but take-up was starkly different. In line with most mass condos launched in Sep – Oct 10, the Farrer Park project drew subdued take-up. In light of HDB resale prices tapering off, recent government measures and prospect of more projects in CY11 (from 2H10 Confirmed List), we expect the cautious approach of pricesensitive buyers here to continue. Strong sales for Allgreen’s prime condo have justified our positive view on the high-end segment, and we reckon a sustained level of buying activity here could provide a short-term catalyst to high-end developers, i.e. Wing Tai and SC Global. In light of flattish residential prices and slowing sales, we reiterate our positive stance on office landlords, i.e. KepLand.

Stick to commercial plays and mid caps. Property stocks are trading at 16% discount to RNAV, in tandem with the long term average. We believe that a faster reflation of RNAVs can be found in the commercial and retail segments compared to the residential segment. Hence, we keep our top stock picks of Keppel Land (Buy, TP $4.75) and UOL (Buy, TP $5.11). We also see greater value in the mid cap developers such as Ho Bee (Buy, TP $2.24).

Oh No, I am not laughing at you. In this forum we like to challenge each other to substantiate our opinions. We can all learn from each other's perspective. Anyway sometimes someone new to the stock market can make better investment decisions than a veteran. I might even change my TP to $9 also. Good luck to both of us.

Well it's just a dream and definitely not so soon. With US$ becoming so cheap, commodities and assets will probably be on the way up. For the same reasons that u mentioned, very good sentiments and so forth, certain property stocks will again reach their all time high, history will repeat itself. Anyway please do not laugh at me, I am quite new to the stock market, still learning.

let hope the property market break the bubble..... otherwise alot of people going to suffer like 1997 ...... for 10 years nobody will be interest in property market again......

keppel recent property swap with REIT is a strange one.......

and hopefully beijing/vietnam investment do not drop......

living in a world of uncertainty -recovery but high unemployment rate, basel III/std chart making profits -but raising fund  - my sincerely hope all singaporean trade within your limits..........do not get caught.

$9 are you sure. You must be thinking that it will go back up to historic high in 2007, am I right?. But that was because there was very good sentiment towards property then, with wall street pushing property stocks high and with our very own IRs.

This time what would the catalyst be? 

thanks paul, the most important point i ask myself when i was monitoring this counter and purchased quite a few times at 3.7x range.  sold all when it hit 4.05.  current price and upside seems to be very limited.  I am not professional enought to discuss their overseas investment or interest......

personal opinion, honestly i am not a guru or anything in stock market.  but i do not want people to get burn.  if got opportunity/value creation, let us help each other to make money together ! huat ah !

Retail real estate sluggish: DTZ

SINGAPORE

Average prime rental rates along Orchard Road and Scotts Road remained unchanged in the third quarter, the firm said.

For the third straight quarter, gross rents of prime first-storey space in the area stayed at $39.70 per square foot per month.

Rents in other areas in the city continued to decline. Prime first storey rents in these areas fell by 0.8 per cent to $24.10 per square foot per month.

Monthly gross rents of prime first-storey retail space in the suburban malls, meanwhile, were unchanged at $33.60 per square foot per month.

DTZ said the new supply of retail space last year led to a competitive environment, which did not support any increase in rentals.

Some 1.3 million sq ft of new retail space became available last year.

Other than the newly-completed and pipeline supply that have put a lid on rentals, the two new integrated resorts also had an impact, DTZ said.

The integrated resorts siphoned off some demand for shopping as more people spend time and money at the casinos instead of at the malls, it noted.

But with a robust economic recovery taking place, DTZ said retail rents should increase gradually next year as the new supply is eventually absorbed.— Singapore’s retail real estate continues to be dogged by supply pressure, according to property consultancy DTZ.