0749 GMT - Singapore developers' returns on equity are poised to rise on tailwinds, including margin expansion, DBS Group Research's Derek Tan says in a research report. Property development margins are expected to widen in the coming quarters, driven by robust sales and easing interest costs, exceeding initial expectations, the analyst says. Strong sales from recent property launches suggest developers could possibly enjoy lower overall funding requirements, the analyst says. With the Singapore Overnight Rate Average lower by 1 percentage point on-year, developers' financing costs could be lower than underwriting assumptions. DBS' top pick among developers is UOL Group, with a buy rating and a target price of S$8.40. UOL Group's shares are 0.7% higher at S$5.84. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
March 26, 2025 03:49 ET (07:49 GMT)
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