Property funds are bailing out of the regional property stocks amid an increasing bearish outlook for the sector, reported Business Times - 26 Aug 2008.
CapitaLand’s shares fell to $4.22 today - its lowest level in two years due largely to heavy institutional selling.
‘We are inclined to be less optimistic than CapitaLand’s management who expect the Singapore residential market to remain flat this year,’ reported Morgan Stanley.
The signal is indeed very bearish for the property market.
Property firms and property developers have however continued to ascertain the market that property price will stay firm. Mr John Stinson, DTZ's regional director of sales and investments for Asia-Pacific's capital markets said, "While the growth in prices may slow, there is unlikely to be a significant fall in property prices here."
To this, a forumer in the Singapore Property Forum responded:
"When property firms or property agents or developers tell you property price ain't coming down, note they're really getting nervous .. just look at how property shares are plunging .. do you want to believe these people or the investors? Institutional investors are having a big sell-off for the property counters, the signal is clear. "
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Stock market tend to lead economic figures. Similarly, a fall in property stocks will lead to a fall in property prices sooner or later.
ReplyDeleteAgree with you.
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