No catalysts in sight for CityDev as new housing initiatives threaten to curb buying sentiment: Jefferies

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SINGAPORE (Aug 21): Jefferies is reiterating its “hold” call on City Developments (CDL) with a price target of S$11, which is based on a 22% discount to a RNAV of S$14, with the view that there are no immediate catalysts for the stock.

The research house remains cautious on developers considering the government’s recent announcement of new public housing initiatives, namely the Voluntary Early Redevelopment Scheme (VERS) and a second version of the Home Improvement Programme (HIP II).

(See: PM Lee unveils healthcare and housing plans to curb cost of living pressures)

While the specifics of the scheme are still being worked out, VERS is intended to be implemented in about 20 years’ time and will be applicable to... (Click here to read the full story)