En bloc is the hot topic since last year. Property analyst foresees a strong Singapore property market recovery in coming years. Therefore, developer are aggressively buying and willing to pay up to 30% more for land.
Why developer are so eager to pay high premium for land?
Because developer purchases the land slot based on future price.
In fact, this massive en bloc activity has already beginning taking effect to push the surrounding property prices up. As Singapore Residential Property Price Index showed property price has bottomed out last year, after 5 years of price declining. The en bloc owner willing to pay more for their next home at same area and there will be more property investor coming when they realize the price going up. This chain effect will make the Singapore property market booming for the next 10 years!
MCL Land (fully owned by Hong Kong Land) is the largest land banks in Singapore, which land value at $2.5 billion. However, City Development have a number of luxury projects on hand and it's inventory has the highest gross development value at around $4 billion. Oxley has also been actively land-banking last year.
The forecast predicts that developer will be more aggressive to buy more land this year.
How can we benefit from this coming Singapore property bull cycle?
1. Invest on private residential property
- In bull market, property price will be easily double in next 10 years. This is the earliest way to profit from property price up and rental income.
2. Invest on property stock market
- The blue chip will lead the property sector once the bull cycle begin. Most of the property stocks are still in bear market, but we can shortlist some in our monitoring list and wait for the buy signal.
Below is the list of Singapore top 10 developer by market capital:
HongKong Land has the biggest market capital and lowest price per book value. HongKong Land also the cheapest based on price per earnings ratio. City Development is most expensive based on price per earnings ratio and price per book value. Yanlord has the highest total revenue but all their project focuses in China.
However, all this data are based on past record. The premium developer paid for the new lands may temporary hurt their balance sheet and the forwards earning is not reflected.
Based on the daily, weekly and monthly chart:
HongKong Land is fundamentally good and technically showing a buy signal:
CapitaLand, the Southeast Asia's largest developer is in side-way trend. It is better to buy when it's price near to the lower range around $3.50:
City Development share price just broken the weekly chart uptrend line support. It may retest the key support level around $10. It should be a good buy at this level:
UOL has breakout $8.00 resistence and now turn to support at this level. The trend is still unclear and moving in triangle pattern:
Frasers Property has massive sell in January 2018. However, it manages to find support around $1.90. Look good at this level:
UIC have strong support around $2.50-$2.70. It is a must buy if it can drop to this level again:
Yanlord share price is facing selling pressure, now at key support level:
GuocoLand have strong ressitance around $2.50:
Wheelock have both trend line and previous low support around $1.70. Let's see whether this level can hold:
Oxley is actively buying land but the share price also facing selling pressure, now at trend line support level:
*I do not own shares on any stocks mentioned above.