Monday, March 4, 2013

Here's how Singapore developers will be hit by China's property curbs

Singapore Business Review
RESIDENTIAL PROPERTY | Staff Reporter, Singapore
Published: 04 Mar 2013

Will 10% home price dip hurt them?

According to CIMB, Singapore developer stocks that have meaningful exposure in China could see selling pressure in the wake of this event.

But the firm notes that most large-caps have diversified exposure across different asset classes in the China property sector.

The residential segment makes up less of the Singapore developers’ GAV when compared to their China counterparts.

Here's more from CIMB:

CMA and GLP have large exposure in China but they are primarily in retail malls (49% of GAV) and logistics/warehousing (53% of GAV), respectively.

While CapLand still has unsold inventory in China’s tier-1 cities, its China residential GAV remains manageable at only 12% of the total.

Among the large caps, KepLand has the largest exposure with 29% of its GAV in China residential; we estimate that a 10% decline in residential prices will lead to a 6% drop in RNAV, the most among its peers.

Among the small-caps, Hobee has the largest China residential exposure at 24% of its GAV.

Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C

Senior Sales Director
DTZ Property Network Pte Ltd (L3007960A)

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