Jul[4] - Property Sector Highlights

On last Thursday, a 5% increase in stamp duty was announced on some home buyers who is going to buy second or more properties. The change in policy came alongside tighter housing loans by Singapore's bid to keep price increase in line with economics fundamentals. Most of properties suffered heavy punch in shares price immediately on following day. A quick highlight on valuation of some major properties counters was shared below:

Generally most counters were trading > 20% lower than its 52 weeks high. Only Ho Bee Land slightly above its 52 weeks low. Recent acquisition of Ropemaker Place in UK could enhance its recurring EBIT by 39%. Bukit Sembawang and Wheelock are the only two close to zero debt. Former actually giving highest dividend at 6%, but with most exposure to SG residential market. Latter has more development projects in China. Capitaland has substantially sold off residential projects in SG. Underpinned by growing earning from commercial portfolio across the region, current dividend yield ~ 4% looks undemanding.