CityDev's share price hit by surprise property policy

It has the largest inventory of about 2,000 units for launching from H2 2018 to 2019.

The stock price of City Developments (CityDev) could go down amidst uncertainty in the next quarters caused by the surprise property policy of the government, DBS Equity Research said.

The developer has the largest inventory of new units left to be launched. DBS analysts Rachel Tan and Derek Tan think that CityDev could postpone their launches for South Beach Residences, West Coast Vale, and the former Boulevard Hotel site to ride out the property frenzy.

CityDev has about 2,000 residential units in the pipeline for launching from H2 2018 to 2019.

“In addition, margins of units from the landbank acquired in late 2017 to 2018 could be impacted given that the ability to raise property prices could now be limited following a turn in sentiment,” the DBS analysts said.

Despite this, the analyst think that CityDev could root on the strong property sales and the successful launch of its fund management platform.

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