DJ MARKET TALK: S'pore Property Stocks Near Trough

02 Apr 2009 09:17 CST - JPMorgan 0117 GMT [Dow Jones] Despite mixed signals from the Singapore property market, property stocks may be near bottoming, says JPMorgan. "We believe that we are near the trough of the down-cycle for property stocks and investors are reasonably compensated for holding onto the larger, more liquid property developers and S-REITs at these levels." Says absorption of substantial potential supply of new homes and prime grade CBD office space is needed to establish market equilibrium. But says Singapore property developers trading at 54% discount to net asset value, reflecting elevated risk premium. Notes Singapore property stocks outperformed Singapore market by 3.9% in March despite weak property data during that time, says this is as expected given their higher betas. Recommends Ascendas REIT (A17U.SG), City Developments (C09.SG) preferred medium-term picks. FTSE ST Real Estate index +2.1% vs FTSE ST All Share index +1.7%. (KIG)