UOB KH warns of possible cooling measures for SG property market

Lim Hui Jie2021-04-27

UOB KH foresees a possible implementation of cooling measures as Singapore property prices jump in Singapore. UOB Kay Hian analysts Adrian Loh has warned of possible cooling measures in the Singapore ...

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UOB Kay Hian analysts Adrian Loh has warned of possible cooling measures in the Singapore ...</p>\n\n<a href=\"https://www.theedgesingapore.com/capital/brokers-calls/uob-kh-warns-possible-cooling-measures-sg-property-market?utm_source=Blog&utm_medium=RSS&utm_campaign=Tiger_Brokers_app_RSS\">Source Link</a>\n\n</div>\n","source":"edge_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>UOB KH warns of possible cooling measures for SG property market</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nUOB KH warns of possible cooling measures for SG property market\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-04-27 09:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.theedgesingapore.com/capital/brokers-calls/uob-kh-warns-possible-cooling-measures-sg-property-market?utm_source=Blog&utm_medium=RSS&utm_campaign=Tiger_Brokers_app_RSS><strong>Lim Hui Jie</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>UOB KH foresees a possible implementation of cooling measures as Singapore property prices jump in Singapore. UOB Kay Hian analysts Adrian Loh has warned of possible cooling measures in the Singapore ...</p>\n\n<a href=\"https://www.theedgesingapore.com/capital/brokers-calls/uob-kh-warns-possible-cooling-measures-sg-property-market?utm_source=Blog&utm_medium=RSS&utm_campaign=Tiger_Brokers_app_RSS\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"U11.SI","symbol_name":"大华银行","start_time":0,"source_url":"https://www.theedgesingapore.com/capital/brokers-calls/uob-kh-warns-possible-cooling-measures-sg-property-market?utm_source=Blog&utm_medium=RSS&utm_campaign=Tiger_Brokers_app_RSS","article_id":"2130337561","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2130337561","pubTimestamp":1619487389,"columns":[],"sourceInfo":{"source_id":"edge_highlight","name":"Edge"},"weMediaInfo":null,"summary":"UOB KH foresees a possible implementation of cooling measures as Singapore property prices jump in Singapore. ","collect":0,"end_time":0,"defaultTopTitle":"theedgesingapore.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"U11.SI":"大华银行"},"translate_title":"大华银行发出警告称，可能会对新加坡物业市场采取降温措施","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"U11.SI":1},"content_text":"UOB KH foresees a possible implementation of cooling measures as Singapore property prices jump in Singapore. UOB Kay Hian analysts Adrian Loh has warned of possible cooling measures in the Singapore property market, saying in a April 27 note that “The strength in the Singapore property market, evidenced by strong sets of data in the past two weeks, has manifestly increased the chances that the government will implement cooling measures in the near term, in our view.\n“In our view, price increases of this magnitude may be politically unpalatable and reinforces our expectation for cooling measures,” he says. \nCiting statistics from the Urban Redevelopment Authority, private residential property\nprices rose 3.3% q-o-q in 1QFY2021, compared to a 2.1% rise in 4QFY2020. \nCondo resale volumes also hit a 10- year high in Mar 21 with 1,662 units resold, beyond a 100% y-o-y increase and 75% above five-year average volumes for March.\n“These, in addition to other bullish property data points have, in our view, increased the chances of the government possibly introducing cooling measures to limit further price increases in the next few months.” Loh highlights. \nFurthermore, supply in the pipeline of private residential units remains tight. Loh notes that planned private residential units in the pipeline have seen a material 66% decline since 3Q18. The existing pipeline of 11,242 units is also at a 20-year low, which could explain the bullish sentiment surrounding the private residential market.\nHe is also keeping tabs on the developing situation regarding the new Covid-19 infections in Singapore’s foreign workers’ dormitories. If this is not contained, it could lead to a slowdown in construction activities and thus delay the supply of new properties.\nLoh points out that prices of HDB flats are also on an upswing, rising 9.5% y-o-y and 0.8% m-o-m in March due to delays in Build-to-Order (BTO) flats, rising private property prices and improving market sentiment. \nThis is the ninth straight month of increases, and as a result, March prices are only 5% off their peak seen in Apr 2013. “Arguably, the Singapore government would be more worried about excessively exuberant HDB prices relative to prices for private residential units.” he says. \nLoh also notes that developed markets globally have seen extremely strong property prices, with significant price increases in Canada (+25% yoy in Feb 21), New Zealand (+22.8% y-o-y in Feb 2021), the US (+11.2% y-o-y in Jan 2021), the UK (+8.6% y-o-y in Feb 2021) and Australia (+2.8% y-o-y in Mar 2021). \nHe says that almost all of the above markets have also reported multi-year highs in transaction volumes. Furthermore, “with the US Federal Reserve setting the tone for other central banks, it appears that the era of ultra-low interest rates bolstering asset prices will continue, especially as governments remain sensitive in needing to support economic recovery post the COVID-19 pandemic.” \nAs such, Loh’s view is that investors should “maintain market weight” on the Singapore property sector, and downgrades Capitaland from “buy” to “hold” with a target price of $3.81. He maintains “buy” ratings for City Development, Oxley, Wing Tai, and Ho Bee Land, with target prices of $8.50, $0.37, $2.04, and $3.2\nAs at 4.39pm, shares of Capitaland were trading at $3.73, with prices of City Development, Oxley, Wing Tai, and Ho Bee Land trading at $7.98, $0.26, $1.91, and $2.74.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2130337561"}