Redas reaches out to property stock analysts
It seeks to engage in information sharing, and hold more frequent meetings
By EMILYN YAP
(SINGAPORE) The Real Estate Developers' Association of Singapore (Redas) is stepping up efforts to engage property stock analysts, as the outlook for the private home sector here remains shrouded by weakening market sentiments and concerns over potential over-supply.
Sources told BT that the industry body had a discussion with analysts and consultants on Monday, and it could be the start of more frequent meetings ahead.
Redas confirmed yesterday that it had organised an informal gathering, attended by 17 analysts from 14 brokerage houses and five consultants.
There was a wide-ranging discussion, which included issues such as 'possible ways to facilitate sharing of information among industry stakeholders, the need to better understand and analyse new market dynamics and the changing nature of the demand for Singapore residential properties', Redas said in response to queries.
According to sources, who spoke about the closed-door event on condition of anonymity, Redas had suggested sharing in-house data to help analysts better study the property market. The supply of private homes in the pipeline was also discussed.
The sharing session took place days after Redas shared results from the latest
Redas-NUS Real Estate Sentiment Index survey, which polled developers, consultants and other Redas members. The findings reflected a softening in sentiments about the property market in the second quarter.
In recent months, several equity research houses also released reports about a potential glut in private homes. One of the most recent is a July 28 report from Bank of America Merrill Lynch, predicting 'an inflection point in 2012, driven by excess supply, demand moderation and slowing economic growth'.
Its analysts expect around 12,500 new units to enter the market every year between 2011 and 2015 - 60 per cent higher than the 15-year historic average annual supply delivered to the market. At the same time, they expect demand for private homes to weaken due to factors such as tighter immigration policies and an influx of HDB flats.
Citi's property analysts are among some who do not see an over-supply of private homes coming, as their June report shows.
Adding to reports from property analysts are views from National Development Minister Khaw Boon Wan, who blogs often. In a June entry, he had advised investors and upgraders to consider various factors, such as volatile global conditions, before buying a property.
There is 'a lot of information out there' and people are feeling uncertain, said a property market watcher who was at the gathering on Monday.
According to Redas, its president Wong Heang Fine has said that he would like to have such sessions on a regular basis, say, every six months.
In his speech at a Redas event last week, he pointed out that it would take 'constant dialogue' among real estate industry stakeholders to sustain confidence and manage sentiments.
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