Why CapitaLand needs to be more aggressive in replenishing its land banks

It has recorded strong sales across Singapore, China, and Vietnam.

CapitaLand is now on the prowl for opportunities across Singapore, China, and Vietnam, as it recorded strong residential sales in the said areas.

According to DBS Vickers Securities, it is time for the group to turn more aggressive in replenishing its land banks in these countries.

"Acknowledging strong competition for land, management is looking at opportunities to acquire land through JVs or mergers & acquisitions (M&A) which will offer the group an alternative and cheaper entry price," DBS Vickers Securities said.

It added that CapitaLand remains keen to build on its recurring income base, and acquiring is the way to go.

However, despite the recent positive sentiment in Singapore property, CapitaLand remains prudent on its investments in Singapore as land prices remain lofty and land-banking opportunities remain scarce.

In China, there remains strong and resilient demand despite the recent property curbs. The group was especially upbeat in Vietnam, following the strong property sales seen in its launches.