The Singapore real estate market has been active in transactions over the past year, driving a significant rise in the stock prices of real estate developers. Market analysis generally believes that, supported by favorable factors such as asset restructuring, shareholder returns, and declining interest rates, there is still room for further revaluation of real estate stocks.
The Monetary Authority of Singapore pointed out earlier that the residential sales volume from January to September this year has exceeded the average level of the past three years. As we enter the fourth quarter, this trend has not weakened. Data shows that the new private residential sales volume in October surged 224% compared to the same period last year.
Driven by both the hot sales of private residences and the interest rate reduction environment, local developers' stock prices have skyrocketed over the past year. For example, among the real estate stocks in the Straits Times Index, City Developments has risen nearly 44% year-to-date, UOL has increased nearly 65%, and Hongkong Land has risen 61%.
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DBS Group's analysis indicates that local developers' stock prices have overall risen about 50% over the past year. However, with various value-releasing measures, there is still considerable room for revaluation of real estate stocks.
&#34;More importantly, we believe that developers are increasingly showing a more proactive stance, committed to capital returns and shareholder benefits, which we see as marking the beginning of a structural revaluation cycle.&#34;
<h3>Strong Momentum in Private Residential Market, Developers' Price-to-Book Ratio Still Low</h3>
Chen Qiuyi, a research analyst from FSMOne Singapore's research and portfolio management department, stated in an interview with Lianhe Zaobao that the strong momentum in the residential market has not yet been fully reflected in developers' stock prices. Developers still have a substantial new housing supply plan during the period from 2025 to 2027.
Among large developers, City Developments and UOL have price-to-book ratios (PB ratio) of only 0.71 and 0.62, respectively. Additionally, Singapore Land, which recently announced the transformation of Marina Square into a super-large mixed-use development project, has a price-to-book ratio of only 0.53 times. Chen Qiuyi believes that the company's extremely low leverage ratio of 2% enhances its risk resistance and options.
DBS Group has also raised the outlook prices for City Developments, UOL, and GuocoLand, narrowing their discounts to revalued net asset values (RNAV) from the previous 40% to 55% to between 25% and 45%
Net asset value is an indicator that measures the actual asset value of developers, reflecting the per-share asset value of developers after deducting debts.
<h3>Medium-sized developers benefit under EQDP, Bukit Sembawang may distribute a special dividend of 1 SGD</h3>
DBS Group also stated that high-value medium stocks such as Hotel Properties Limited, Bukit Sembawang, and Ho Bee Land may benefit under the Equity Development Plan (EQDP) and attract investor interest.
<h4>Further Reading</h4>
DBS: Average price per square foot for private residences in Singapore may exceed 4,000 SGD by 2040

 Strong residential sales boost real estate stocks, some developers' stock prices have risen over 80% this year


DBS Group is particularly optimistic about Bukit Sembawang's solid assets and believes there is a possibility of distributing a special dividend of up to 1 SGD in addition to its regular dividends, which have historically ranged from 0.16 SGD to 0.20 SGD.
Chen Qiuyi stated that Ho Bee Land's price-to-book ratio is only 0.39 times. Due to the low coverage of this stock and its undervalued net asset value, it may become the biggest beneficiary under the Equity Development Plan.
OCBC Bank's report pointed out that our country's developers once tended to invest in rental and hotel assets as investment properties. However, many developers suffered losses due to fair value losses on overseas investment properties. Nevertheless, as they return to real estate development, this helps diversify income and profits.
Maybank analyst Wang Baochun said in an interview that as private residential sales are expected to reach a four-year high in 2025, developers are anticipated to launch fewer new projects in 2026, which may cool market enthusiasm.
<h3>Declining construction and interest rate costs improve developers' profits</h3>
Our government announced earlier that it plans to launch land for the construction of 4,500 units in the first half of 2026, compared to 4,725 units in the same period this year
OCBC Bank believes that as the land sale plan decreases, future land supply may tighten, and developers will continue to seize opportunities to acquire land. Additionally, as construction costs stabilize and interest rates decline, private residential prices and transaction volumes are rising, which may improve developers' profit margins.
&#34;Nevertheless, if developers begin to engage in fierce competition in land sales, they must remain cautious, as this may impact profit margins.&#34;
Recent data shows that household net worth in our country continues to rise. Chen Qiuyi pointed out that this reflects the rigorous borrowing behavior and credit standards in our country. &#34;Therefore, the government is not expected to tighten policies further. Policies may remain adjusted and neutral, focusing on ensuring long-term housing affordability.&#34;
Apart from developers, Wang Baochun reminded that as new project supply decreases, real estate agencies such as PropNex and APAC Realty may see a decline in profitability.
He stated that the stocks of these two agencies have fallen more than 25% from recent highs. Their performance in the second half of the 2025 fiscal year is expected to decline by about 20% quarter-on-quarter. As the market's earnings forecasts for them remain overly optimistic, analysts are expected to revise their forecasts downwards during the full-year financial report release in February next year

DBSDY

The Singapore real estate market is active, with declining interest rates and private residential sales driving up real estate stock prices. According to data from the Monetary Authority of Singapore, residential sales this year have exceeded the average level of the past three years, with new private residential sales in October surging by 224%. City Developments, UOL, and Hongkong Land saw their stock prices rise by 44%, 65%, and 61%, respectively. DBS Group analysis suggests that developer stock prices still have room for revaluation, marking the beginning of a structural revaluation cycle

Interest rate decline and private home sales drive local real estate stocks to continue rising | Lianhe Zaobao