Property M&As gain momentum

Property developers in the country would have more merger and acquisition opportunities this year as the realty market may witness a correction, ratings agency Standard & Poor's said yesterday.

"Mid-2010 could prove to be the turning point for many developers, as increased supplies would see competition intensifying even as tighter policies weaken demand," said Christopher Lee, corporate ratings director at Standard & Poor's. "Growth rates of many firms may slow, while M&A activity could increase," he said.

The ratings agency said it has a "neutral" outlook for the nation's property sector this year as the market uncertainties are somewhat balanced by the supportive underlying fundamentals and the strengthening economy.