In the midst of an economic restructuring to become more reliant on productivity than labour, a lower growth rate is expected over the short and maybe mid-term.
Having suffered from two consecutive years of lower earnings, there are increasingly positive signs that earnings cuts for Singapore companies are over soon. As we head into 2H17, CIMB Research foresees the possibility of the beginning of an earnings upgrade trend.
Singapore property stocks are set for their best annual performance in five years, and strategists believe the rally is far from over.
The top three US indices have reached historical high again. Similarly, the Hang Seng Index has reached its 23-month high. In the year of 2017, the Hang Seng has been rising every month. Many found it incredible, and thus they reduce their share holdings, sell, and lock in profits. Share prices continued to rise for the subsequent months, but turnover has not increased drastically. This shows that the stock market has yet to reach a frenzied state. Many held a pessimistic market outlook as they did not see turnover soar to great heights, but they turned out to be wrong.
A friend told me he is seriously considering selling his fully paid 5 room HDB flat in RCR to buy 2 shoebox apartments so that he could stay in one and rent out the other for cash flow. Hopefully, property prices would go up and he could benefit from capital gain by selling one.
The property sector in Singapore looks set to be recovering. Private primary sales (ex-EC) momentum has been improving over the past four months. As at 16 May 2017, there have already been 1,555 units sold, representing a 107 percent year-on-year increase. Year to date sales rose to 4,517 units, which is the best start to the year since 2013.
How does its exposure to China’s retail scene help CRCT in improving its business operations? Let’s dive deeper to unearth some of its strengths.
In Singapore where more than 90 percent of our resident households own their house (Singstat), renting a place might seem to be an absurd idea. We view our property as a valuable asset that provides security to the household and owning one may seem essential to many Singaporeans.
In its previous alpha picks, its top picks (BCIA, Alibaba, Li Ning and Sihuan Pharma) gained more than ten percent in a single month. Given its stellar performance, UOBKH recommends a new set of alpha picks of Chinese companies for the month of May that could replicate the same performance.
Because Asia-Pacific economies are highly interdependent, one question that investors often ask when we discuss an Asia-Pacific REIT strategy is whether a regional real estate strategy provides enough diversification.