Property stocks still trading at huge discounts despite share price rebound

Residential softness to stay for another 2-3 years.

A reprieve came earlier in the year boosted by M&A for several property-related stocks, as transacted prices have softened and property stocks have been sold down.

According to OCBC Investment Research, this narrowed the discount to RNAVs for most property stocks as prices rallied.

However, despite the slight recovery in developers’ share prices, most property stocks are still trading at substantial discounts to their book and RNAVs.

OCBC expects the softness in demand for Singapore residential properties to stay for a while at current transacted prices, However, OCBC believes that weakness is also an opportune time to positions for long-term recovery.