OCBC Investment Research raised its target price for property developer City Developments Ltd to S$13.96 from S$13.18, and kept its ‘buy’ rating on the stock, citing healthy demand for some major residential project launches in the next year.
CityDev shares were up 0.2 percent at S$12.50 by 0215 GMT. They have gained 40.4 percent since the start of the year, compared with the Straits Times Index’s 19 percent rise.
CityDev is expected to launch the Echelon, a 508-unit condominium near a centrally located train station in Singapore, which OCBC anticipates will sell well due to its good location. CityDev could also launch a 912-unit development in the east of the island.
OCBC also noted CityDev management’s expectations that mass market residential projects will continue selling well due to abundant liquidity in the market, with prices expected to show moderate increases.
CityDev is likely to be active in government land sales tenders in future, especially for mass markets sites located near train stations, it said.