19 Sep 2013 13:24 by Standard Chartered
Developers’ private home sales declined 48 per cent year-on-year in August, as the new total debt-servicing framework restricted buying interest. If developers cut prices to stimulate demand, margins could fall further.
We believe the developers most exposed to margin compression are Wheelock Properties, Singapore Land, Wing Tai Holdings and Keppel Land, based on land purchases made over the past 12 months. We downgrade Keppel Land to In-Line from Outperform after its recent outperformance.
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