11-05-2013, 04:08 AM
Hi everyone, I was just wondering why are most property stocks (excluding REITS) trading at 50% discount to RNAV while the actual properties themselves seem to be trading at a premium to RNAV?
The 3 reasons I can think of are control of the property, the ability to "withdraw" CPF and the leverage involved but I am wondering if these 3 factors are worth the 100% premium an individual residential/industrial/strata office unit commands over a property stock.
Also would anyone consider having a diversified holding of various undervalued property counters as a cheap way of maintaining exposure to the Singapore property market and therefore a long term inflation hedge?
The 3 reasons I can think of are control of the property, the ability to "withdraw" CPF and the leverage involved but I am wondering if these 3 factors are worth the 100% premium an individual residential/industrial/strata office unit commands over a property stock.
Also would anyone consider having a diversified holding of various undervalued property counters as a cheap way of maintaining exposure to the Singapore property market and therefore a long term inflation hedge?