Here's why STI investments could see better returns than Singapore’s property market

SINGAPORE (April 4): Taking your chances on Singapore’s Straits Times Index (STI) could be a wiser investment decision than putting your capital in the local property market, says Tata Goeyardi of Religare Capital Markets.

The research house is maintaining its “overweight” view on property developers with its top pick being CapitaLand Limited. It also notes that underperformers such as Frasers Centrepoint Limited (FCL), GuocoLand, UOL and UIC are looking attractive on valuation as well.  

In a sales commentary issued by Religare Sales on Tuesday, Goeyardi notes that the price index of private homes in Singapore has fallen 0.5% q-o-q in the first quarter of this year alone, according to Urban Redevelopment Authority (URA) flash estimates – representing a similar pattern observed in 4Q16 and also marking the 14th consecutive quarter of the index’s fall.

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