City Developments Limited is likely to benefit from the improving housing market sentiment since it has the largest unsold inventory and land bank, based on the Credit Suisse Report.
The introduction of property cooling measures in 2013 reduced the transaction volume by 66% from 37,873 units sold in 2012 to 12,850 units sold in 2014.
The report said that while volumes transacted remained tepid, and the declining prices increasing the demand, of late volume has grown across primary and secondary markets.
In fact, as shown by Q3 2016 data, there was a 10.5% increase in total sales volumes on y-o-y supported by strong resale volume in all markets.
Credit Suisse noted that the increase in resale volumes by 53% in Q3 y-o-y represents buyer sentiments better instead of using total volumes. The total volumes tend to exclude the effect the reduced land sites has on the volumes of primary sales.
The report showed a progressive reduction in the total unsold units (including planned, under construction or completed developments) to a record low of 22,502 units. Based on this, Credit Suisse expects CDL to benefit from the improving market sentiment.
The report adds that based on the proprietary analysis by Credit Suisse, CDL has the largest unsold inventory and a land bank of approximately 2,909 units of $5.8 billion, with half being located in Core Central Region. Volumes are better drivers of the performance of share price rather than the prices of the property since they reflect better the residential market sentiment.
CDL is listed in Singapore, but it operates internationally in 26 countries and 94 locations. Some of its residential properties include Forest Woods, Gramercy Park, Cliveden at Grange and The Venue Residences. It also has retail and office properties. Office properties include City House, and Katong Shopping Center. Retail properties are City Square Mall, Central Mall, Republic Plaza and more.