Property stocks down as slowdown seen

Shares of Singapore property stocks were hammered on Thursday as sales volumes were expected to slow down and prices were seen falling amid a weaker global economic outlook.

 

At 11:35 A.M., CapitaLand (CATL.SI) was down 2.7% and City Developments (CTDM.SI) was 2.6% lower. In comparison, the broader Straits Times Index <.FTSTI> retreated 1.8%.

 

“The sales volumes have not really gone up as fast as before, and if you look at recent launches at least in the last couple of months, prices have also stagnated. All these are possibly signs that the sector looks to be slowing down,” said Donald Chua, an analyst at CIMB Research.

 

“I think next year, when more and more inventory comes in, the effect will be felt even more. I am looking at prices in Singapore's residential sector to fall, possibly 10-15% from the current levels,” he added.