Will Singapore Property finally recover?

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.

  1. Singapore economy could see a cyclical recovery. Recent macro indicators show a positive momentum from exports and manufacturing outputs.
  2. Rising household formation rate, driven by singles and shift in foreign workers towards higher skilled workers, will offset slowing population growth.
  3. Better demand-supply dynamics. Unsold inventories are at record low.
  4. 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.