City Developments' share price will likely be rangebound in the near term until investor concerns are addressed, RHB Singapore vice president of equity research Vijay Natarajan says.

The Singapore property developer's executive chairman is discontinuing his lawsuit against his son, the group CEO of the company and other board members, he notes.

Although the move could soothe concerns about the company, it doesn't fully address the various corporate governance issues and board differences raised during the dispute, he says.

Investors want to see additional safeguards and steps that will be put in place to avoid similar problems from arising in the future, he adds. RHB maintains a neutral rating and target price of S$4.75 on the stock, which is at S$5.14.