Now could be a good time to buy Singapore property stocks

SINGAPORE (Jan 26): Yes, you heard it right -- Singapore’s home prices are set to make a comeback after a three-year losing streak. And analysts think property developer stocks are the best way to play that rebound.

Amid a restructuring push to boost a slowing economy, the government could signal its intention to reconsider property cooling measures as early as the budget speech in February, Carmen Lee, head of research at Oversea-Chinese Banking Corp. said in an interview. That promises to boost the city-state’s largest developer stocks, including City Developments, which is one of the top picks for OCBC’s Lee and analysts at CIMB Research, Credit Suisse AG. Other potential winners include CapitaLand, UOL Group and OUE.

“Between buying physical property and buying stocks, stocks offer you the liquidity and they are pricing in all the negatives,” Lee said. “They may not outperform in the next one to two quarters but if you ride this out for 18 months or so, you will see better upside.”

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