Singapore property has been in a long slump since 2013, plagued by an oversupply situation. But will it finally recover?
Morgan Stanley thinks residential prices will inflect in 2018 and double by 2030.
- Singapore economy could see a cyclical recovery. Recent macro indicators show a positive momentum from exports and manufacturing outputs.
- Rising household formation rate, driven by singles and shift in foreign workers towards higher skilled workers, will offset slowing population growth.
- Better demand-supply dynamics. Unsold inventories are at record low.
- Recent reduction in property curbs a positive signal.
Property developer stocks are inexpensive and could see re-rating. Top picks are Capitaland, CDL and UOL.