City Developments

City Developments: OCBC downgrades City Dev to Hold from Buy and cuts its fair value estimate to $13.01 from $14.05, after SG introduced broad property curbs to rein in skyrocketing home prices. House believe that City Developments would be unfavorably affected by the most comprehensive set of property cooling measures implemented by SGauthorities since Sept09. Although the developer continues to execute well on its residential strategy, expect headwinds for the group ahead as these curbs affect demand fundamentals meaningfully. The house's new rating results from a higher RNAV discount (now at 15%) and the application of lower average selling prices into its model to "reflect softer sector fundamentals after the latest measures."