UOB Kay Hian is keeping its “buy” recommendation on City Developments (CDL), even as the property developer saw its results come in slightly below expectations in 4Q17. “While results were slightly below expectations, management remains optimistic on prospects for the Singapore residential property segment,” says lead analyst Vikrant Pandey in a Thurs report. The healthy sentiments are not expected to be hampered by a 1 percentage point increase in top marginal buyer’s stamp duty (BSD) rates to 4% for residential properties above $1 million. “Management sees a muted effect on the mass-market segment, while expecting discerning buyers in luxury developments to see the strong potential of property investment in Singapore compared to other global cities like Hong Kong where prices have increased significantly,” Pandey says. “The land bids tendered by CDL in the past year also suggests it is expecting over 10% appreciation in residential prices on average,” he adds.... Continue Reading