City Developments is ‘undisputed residential champion,’ DBS says

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City Developments is the “undisputed residential champion,” DBS said in a note last week, calling it a key proxy to the upward trend in Singapore’s residential market.

“We believe that catalysts abound for the group after its successful land-banking activities which added five residential sites over the past year,” DBS said.

It noted its analysis indicated CityDev has the largest amount of unsold inventory on its books, estimated at around S$6 billion and around 3,600 units. The properties are across the suburban, Mid-to-luxury end segments, the bank noted.

DBS said it expected that strong pre-sales at the upcoming launch of the Tapestry development will be a catalyst for a further re-rating of the stock.

It raised its target price to S$15.40 from S$14.03, keeping a Buy call.

The stock ended Friday up 3.25 percent at S$13.36.