Residential Property

Will en-bloc news continue to underpin the residential market?

  • The Singapore residential property market remains hot as the en-bloc fever continues with developers showing strong demand for land
    • Chuan Park is now in private talks following the close of its S$938m en-bloc tender
    • The freehold development La Ville was recently sold for S$152m
  • En-bloc news remains active given the strong property market and high demand for land by developers as seen from the number of bids in the recent Government Land Sales (GLS)
  • Positive for property developers (City Development, Bukit Sembawang) and property brokers (APAC Realty and PropNex) in Singapore as it would mean a larger pipeline of new launches and these stocks typically perform well in an en-bloc cycle
    • Our preferred picks are City Development and Bukit Sembawang as they are trading at only 0.6x and 0.8x FY21F P/BV respectively