The 10 best-performing real estate developer stocks (excluding REITs) with market cap of S$200 million and above on SGX have averaged a total return of 21.7% in the YTD, bringing their 3Y and 5Y total returns to 23.3% and 16.7% respectively.
Among these 10, the 3 best performers in the YTD were: CityDev (+35.7%), UOL (+28.8%) and United Overseas Australia (+25.9%), averaging a total return of 30.1% over the period.
Singapore’s private residential property prices climbed further in 3Q 2019, after hitting their highest levels in at least five years in the previous quarter, URA data showed. Medium-term demand for private homes is expected to pick up, driven by government measures to boost affordability in the public housing market, a recent DBS Research report noted.
SGX lists over 70 real estate developers and operators (excluding REITs). Among these, more than 30 have a market capitalisation of S$200 million and above.
In the 2019 year-to-date, the 10 best-performing developer stocks with a market cap of S$200 million and above have averaged a total return of 21.7%, bringing their three-year and five-year total returns to 23.3% and 16.7% respectively.
Among the 10, the 3 best performers in the YTD were: City Developments (+35.7%), UOL Group (+28.8%) and United Overseas Australia (+25.9%). They have averaged a YTD total return of 30.1%.
The table below details the 10 best-performing real estate developer stocks with market cap of S$200 million and above on SGX, sorted by YTD total returns.
| Name | SGX Code |
Market Cap S$m |
Total Return YTD % |
Total Return 3 Yr % |
Total Return 5 Yr % |
|---|---|---|---|---|---|
| CITY DEVELOPMENTS | C09 | 9,522 | 35.7 | 33.2 | 18.2 |
| UOL GROUP | U14 | 6,511 | 28.8 | 45.7 | 32.7 |
| UNITED OVERSEAS AUSTRALIA | EH5 | 1,132 | 25.9 | 48.5 | 63.5 |
| OXLEY HLDGS | 5UX | 1,455 | 24.4 | 15.6 | 3.4 |
| CAPITALAND LTD | C31 | 18,236 | 21.7 | 33.8 | 29.5 |
| HONG FOK CORP | H30 | 696 | 21.0 | 36.0 | 9.3 |
| GUOCOLAND LTD | F17 | 2,402 | 17.3 | 22.0 | 34.0 |
| AVJENNINGS LTD | A05 | 218 | 17.1 | -2.6 | 19.0 |
| SINGHAIYI GROUP | 5H0 | 401 | 13.5 | 7.9 | -27.7 |
| OUE LTD | LJ3 | 1,335 | 12.2 | -6.9 | -14.8 |
| Average | 21.7 | 23.3 | 16.7 |
Source: Bloomberg & StockFacts (data as of 22 Nov 2019)
Residential Market Outlook
Private residential property prices in Singapore continued to climb in the third quarter of 2019, after hitting their highest levels in at least five years in the previous quarter, data released last month by the Urban Redevelopment Authority (URA) showed. The private residential property index increased 1.3% to 152.8 points in the September quarter, after gaining 1.5% to 150.8 points in the June quarter.
DBS Research expects demand for private homes in Singapore to pick up in the medium term, driven by government measures to boost affordability in the public housing market, it said in a report published in September.
The Housing Development Board (HDB) and Ministry of National Development (MND) announced several new policies, including the Enhanced CPF House Grant, as well as higher household income ceilings for purchase of new HDB built-to-order, HDB resale and Executive Condominium homes. These measures took effect in September.
“We expect the higher grants to create more buying interest in the public housing market, especially the HDB resale market space. In the medium term, as HDB resale prices stabilise or even increase, we expect confidence to return to the private residential market, as upgrader households cash out of existing homes to fund their next property purchase,” the report added.
Earlier this month, a report jointly published by the Urban Land Institute and PricewaterhouseCoopers ranked Singapore No. 1 for real estate investment prospects in 2020, vs second-to-last in the list of 22 centres back in 2017.
Singapore was also one of the few markets regionally to see a surge in transaction values in the first half of 2019, with most of the activity driven by cross-border capital. Deals totalled US$4.9 billion over the period, up 73% YoY, the report noted.
