Time to look at Property stocks

The property market, which staged a steady recovery last year after the slump in 2008, has now gone in overdrive. Some condominiums projects, which were launched in the past few months at exorbitantly high prices, were easily sold off. Properties in desirable location has enjoyed appreciation in value of 15-20% over the past one year. Despite the expected rise in interest rates this year, property developers are fairly confident that their sales will not be seriously impact. In view of this bright outlook, I think it is now time to buy property stocks which have not gone up too much.

From Chart 1, we can see that the Properties index has not moved up by much. I have appended below the charts of my three favorites- Sunrise, Suncity & IGB (the latter has limited exposure to property development). I believe that all three stocks should see decent price appreciation in the months ahead.



Chart 1: Properties' daily chart as at Mar 10, 2010_3.05pm (Source: Quickcharts)


Chart 2: Sunrise's weekly chart as at Mar 10, 2010_3.00pm (Source: Quickcharts)


Chart 2: Suncity's weekly chart as at Mar 10, 2010_3.00pm (Source: Quickcharts)


Chart 3: IGB's weekly chart as at Mar 10, 2010_3.00pm (Source: Quickcharts)