This developer is a crowd favourite in the property market

SINGAPORE (Oct 18): CIMB Securities and Credit Suisse are recommending City Developments Limited (CDL) as their top developer pick of the sector with target prices of $8.75 and $11.50 respectively.

While CIMB is highlighting the counter for its active capital recycling, low gearing as well as expectations of its overseas contributions from China and the UK to ramp up in 2H16F, Credit Suisse expects CDL to go through further asset monetisations to be the next catalyst and thinks its current valuations are attractive.   

This comes as both research houses note that Singapore’s property sector registered a 49% improvement in sales transaction volume for the month of Sept compared to a year ago. The latest data excludes executive condominium (EC) sales, which appears to have softened with a 10% y-o-y decline in sales instead.

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