Opportunities that lie ahead
Attributing to the selloff, the market presented a buying opportunity for long term investors with some of the stocks trading at the lows of their 52 weeks range. Stocks like Wing Tai, Bukit Sembawang, APAC Realty, are also trading at attractive Price-to-book ratios at 0.39, 0.64 and 0.85 respectively.
Referencing back to 6th July 2018, where the last property cooling measures were announced, we could see from the chart that the market rebounded briefly presenting short term opportunity for quick gains before trading at a lower range.
However, over a longer period, the property market generally traded higher as investor optimism improved and foreign demand came in.
*Source Bloomberg, SGX Real Estate Index which measures the performance of the listed real estate sector in Singapore
With this overall trend, the recent selloff in the property sector could present an opportunity in the longer term as the overall property sector in Singapore seemed to improve over time. Investors with a longer investment horizon could take advantage of the current decline in prices to build up their portfolio and stand to benefit when the market recovers.
Investors looking to capture this opportunity in the property market can do so with Phillip Futures’ promotional commission of 0.05% for these counters.
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