Results 1 to 1 of 1

Thread: Smaller firms hotter buys than bigger players in property stocks

  1. #1
    Any complaints please PM me
    Join Date
    May 2006
    Posts
    8,129

    Default Smaller firms hotter buys than bigger players in property stocks

    April 6, 2007

    Smaller firms hotter buys than bigger players in property stocks

    Among them, best performer SC Global records 94% surge in stock for year to date

    By Joyce Teo, Property Correspondent


    AS ANY investor can tell you, property stocks are hot but what you might not know is that the smaller players have proved the better buys this year.

    If you had invested in property firms SC Global Developments, Hotel Properties (HPL), Hong Fok or MCL Land at the end of last year, you would have done well, judging from their share performance.

    SC Global, which develops high-end property, took the top spot for the best performer in the sector so far this year.

    It is expected to launch luxury condominiums in the Orchard Road area soon. Its stock has surged 94 per cent this year, surpassing even HPL, which has put up a stellar performance this year, jumping 89 per cent.

    In mid-March, HPL shares had already raced to an all-time high of $4.70 on speculation that its major shareholder, Mr Ong Beng Seng, may be awarded the deal to stage the Formula 1 race in Singapore.

    Its Orchard properties could also benefit from the record prices recently achieved at CapitaLand's Orchard Turn project, market sources have said.

    In third place was low-profile Hong Fok. Its shares climbed 18 cents to close at $1.58 yesterday, prompting a query from the Singapore Exchange (SGX). The leap yesterday brought its rise this year to 73.6 per cent.

    Hong Fok responded to the SGX query by saying that the improved conditions of the market raised 'obvious opportunities', one of which is for the potential redevelopment or enhancement of its properties.

    The firm added that it has commenced consultations with government authorities on this plan.

    Hong Fok's portfolio includes The Concourse office block in Beach Road and International Building in Orchard Road, which will benefit in value from its proximity to the Orchard Turn development.

    News of the more than $4,000 per sq ft record set at Orchard Turn condominium added fuel to the positive news flow that has spurred property stocks, analysts said.

    And recent government data shows that the recovery appears to be reaching the mid- and mass market, added one analyst.

    'Last year, the big developers such as CapitaLand and City Developments did well. This year, the positive sentiment has flowed down to the second-liners,' said an analyst.

    In terms of valuation, most of the smaller ones with exposure to the residential market are still attractive compared with the bigger players, he added.

    Developer MCL Land is the fourth best performer, thanks to its Waterfall Gardens project in Farrer Road achieving benchmark prices.

    It was followed by Ho Bee Investment, still running on its Sentosa Cove success story.

    Laggard stock GuocoLand also turned in an impressive performance. Earlier this year its The View @ Meyer condominium was sold at benchmark prices for the Meyer Road area.

    But positive news flow is a very small part of the market, said Mr Winston Liew, an analyst at OCBC Investment Research.

    The rest of the property market - apart from the high-end or niche segments - needs to move to support prevailing stock price levels, said Mr Liew.

    'I see the general market on an uptrend but I don't believe it will move in the same sort of quantum leap as the high-end market,' he added.

    'If it does, it could lead to government intervention.'

    [email protected]
    Attached Files Attached Files

Similar Threads

  1. Smaller players grabbing slice of prime real estate pie
    By mr funny in forum Singapore Private Condominium Property Discussion and News
    Replies: 1
    -: 02-01-13, 14:56
  2. CBD vacancy rates dip with demand from smaller firms
    By reporter2 in forum HDB, EC, commercial and industrial property discussion
    Replies: 0
    -: 08-07-12, 01:39
  3. Smaller firms join hands to battle big developers
    By reporter2 in forum Singapore Private Condominium Property Discussion and News
    Replies: 2
    -: 05-06-12, 21:35
  4. Firms will have to fork out bigger cash proportion
    By mr funny in forum En Bloc Discussion and News
    Replies: 0
    -: 18-01-11, 01:43
  5. Bigger slice of a smaller pie?
    By mr funny in forum Singapore Private Condominium Property Discussion and News
    Replies: 0
    -: 11-12-08, 22:49

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •