Broker Name: DBS Bank Ltd
Date of Report: 7 Oct 2025

Excerpt from DBS Bank Ltd report.

Report Summary

• Despite a strong rally in Singapore property developer stocks (up to 50% YTD), the sector still trades at a significant discount to revalued net asset value (RNAV) and below historical price-to-book (P/B) averages. This is supported by robust pre-sales, ongoing asset divestments, and value-unlocking strategies.
• Preferred picks are UOL, CDL, and GuocoLand (GUOL), which are well-positioned to benefit from new project launches, asset recycling, and potential dividend increases. Upcoming launches in the Core Central Region (Orchard Road, Marina Bay) and mid-cap value enhancement opportunities (e.g., HPL, Ho Bee Land, Bukit Sembawang) are key catalysts.
• Falling interest rates and strong buyer demand have driven residential sales volumes and prices above expectations in 2025, with most new launches priced within the SGD1.5-2.5 million ‘sweet spot’ for affordability.
• Singapore’s government initiatives, including market reforms and incentives for value-unlocking activities, are expected to further support re-rating of developer shares and enhance shareholder returns via asset divestments, special dividends, and potentially REIT/stapled security structures.
• Rejuvenation of key districts (Orchard Road, Marina area) through redevelopment is a major value-creation theme, with several large-scale mixed-use projects in the pipeline.
• Developers are actively replenishing their landbanks and maintaining low unsold inventory, ensuring strong earnings visibility and the potential for further RNAV accretion.
• Mid-cap developers such as HPL, Ho Bee Land, and Bukit Sembawang are being monitored for significant value-unlocking events, including asset sales and capital returns.

Above is an excerpt from a report by DBS Bank Ltd. Clients of DBS Bank Ltd can be the first to access the full report from the DBS Bank Ltd website : https://www.dbs.com.sg