Singapore’s private property market appears to be stabilising as URA’s 2Q17 flash estimates show smallest QoQ price decline of private residential property prices since 4Q13. YTD average monthly primary private home sales volumes are also 74.6% higher YoY.
Existing property cooling measures are likely to remain despite recent calibrated adjustments. In the medium term, MAS believes that Singapore’s property prices should be aligned with broader income trends in the local economy.
SGX lists six Real Estate Management & Development (GICS®) stocks with market capitalisation above S$1 billion that have substantial exposure to the Singapore property market. These six companies have an average total return of 29.2% in the year thus far.
Real Estate Sector Sub-Segment: Residential Property Market
Singapore Private Home Sales See Signs of Rebound
Singapore private residential prices declined 0.3% QoQ in 2Q17, according to flash estimates announced by the Urban Redevelopment Authority (URA) last week. While 2Q17’s prices marked the 15th consecutive quarters of sequential decline, it was the smallest quarter price decline since 4Q13. Singapore private home prices are now 11.8% lower than the peak (last seen in 3Q13).
On primary home sales, private homes sold in Singapore by developers are seeing a pick-up in transaction volumes. Primary private home (excluding executive condominiums) sales volumes in Feb to Apr 2017 grew between 108-223% on a YoY basis (May at -3.2% YoY). The average monthly transaction volume (excluding executive condominiums) in the year-to-date is at 1,145 units, 74.6% higher than the same period a year ago.
Source: URA, SGX (data as of 12 July 2017)
Existing Cooling Measures Likely to Stay Despite Recent Adjustments
On 11 Mar 2017, the Singapore government announced a set of calibrated adjustments to the existing property cooling measures (click here), with industry participants hopeful that it signals a more accommodative policy by the government. However, in the recent media conference hosted by the Monetary Authority of Singapore (MAS), Mr. Ravi Menon (Managing Director), stated that existing property cooling measures remain necessary and it is not the time yet for easing. Mr. Menon said that the local property market has substantially stabilised over the last three years, with underlying demand for private homes remaining firm amidst a continued low interest rate environment. Over the medium-term, Mr. Menon believes that Singapore’s property prices should be aligned with broader income trends in the economy (click here).
For more, please refer to the SGX Real Estate sector presentation.
SGX-Listed Developers With Substantial Exposure to Singapore Property Market
SGX lists six Real Estate Management & Development (GICS®) stocks with market capitalisation above S$1 billion that have substantial exposure to the Singapore property market. These six companies have an average total return of 29.2% in the year thus far.
Bukit Sembawang Estates was the best performing stock in the year-to-date of the six with a total return of 47.5%, followed by Wheelock Properties (+30.6%), City Developments (+29.9%), UOL Group (+27.2%), Wing Tai Holdings (+23.2%) and United Industrial Corporation (+15.2%).
The table below details the 6 Real Estate Developer stocks with substantial exposure to the Singapore property market, sorted by market capitalisation. Click on each stock to visit its profile page on SGX StockFacts.
| Name | SGX Code |
Market Cap S$m |
Price S$ |
Total Return YTD % |
Total Return 1 Yr % |
P/B | P/B 5 Yr Avg |
Dvd Ind Yld % |
|---|---|---|---|---|---|---|---|---|
| City Developments | C09 | 9,693 | 10.64 | 29.9 | 30.8 | 1.1 | 0.9 | 0.8 |
| UOL Group | U14 | 6,114 | 7.46 | 27.2 | 36.7 | 0.7 | 0.6 | 2.0 |
| United Industrial Corp | U06 | 4,511 | 3.16 | 15.2 | 17.3 | 0.7 | 0.7 | 1.0 |
| Wheelock Properties | M35 | 2,238 | 1.87 | 30.6 | 33.3 | 0.7 | 0.6 | 3.2 |
| Bukit Sembawang Estates | B61 | 1,698 | 6.61 | 47.5 | 47.6 | 1.3 | 1.0 | 0.6 |
| Wing Tai Hldgs | W05 | 1,528 | 1.99 | 24.8 | 23.2 | 0.5 | 0.4 | 1.5 |
| Average | 29.2 | 31.5 | 0.8 | 0.7 | 1.5 |
Source: SGX, Bloomberg & SGX StockFacts (data as of 12 July 2017)
