Standard Chartered has downgraded its recommendations on real estate firms Keppel Land Ltd, CapitaLand Ltd and City Developments Ltd, referring to lower launch prices next year due to larger land supply.

"We expect an increase in the residential supply in the pipeline in 2011 mainly due to the record land supply the government has announced it will push out in the second half of 2010," said StanChart.

Furthermore, the bank said it expects prices to be in a down-cycle if the Singapore government revises its policies to raise public housing supply for the next six to 12 months.

It also forecasted launch prices to drop 10 percent in the prime districts and 20 percent in the mass market districts next year.