Stocks selling at a bargain as GE nears

Various developer stocks are currently trading at a sharper discount to their book value, or at a smaller premium than before.

Kim Eng Research said property stocks are being sold down as polling day approaches. In a statement, the analyst attributed the rush sale to concerns that there could be more policy changes affecting both the public and private property markets.

The government has earlier raised the possibility of raising the household income ceiling for buying new HDB Build-To-Order (BTO) flats from the current $8,000 to $10,000, which, if implemented, will lead to a price correction in the mass market properties sector.

Wing Tai and Ho Bee are some of the companies currently trading at a 30% discount to its book value, both with landbank in the high-end segment.

Kim Eng noted, however, that big-cap names such as Keppel Land still tend to trade at a premium to book value.

Keppel Land stands to gain from upward revision from the completion of investment properties like Ocean Financial
Centre and Marina Bay Financial Centre Phase 2.