Singapore’s large- and mid-cap property developers entered 2025 trading at deep discounts to their book values, reflecting investor scepticism over capital efficiency and returns. However, a clear shift is underway. According to a Dec 9 report by DBS Group Holdings, developers are increasingly pursuing asset divestments, securitisation and capital recycling strategies to unlock value, return capital to shareholders and drive a structural re-rating of the sector.
DBS notes that developers now have “meaningful room for re-rating” as management teams adopt a more proactive stance toward monetising mature assets and rewarding shareholders. This shift marks an inflection point, with narrowing discounts to net asset value (NAV) emerging as tangible proof that these strategies are working.
Two of the clearest examples are Hongkong Land and City Developments (CDL). Hongkong Land has accelerated its capital recycling programme through high-profile asset sales and fund launches. Its divestment of Marina Bay Financial Centre (MBFC) Tower 3 to Keppel REIT for $1.45 billion, followed by the launch of the Singapore Central Private Real Estate Fund (SCPREF), signals a deliberate move toward asset-light growth. SCPREF, seeded with prime Singapore office assets valued at $3.9 billion, is expected to start with over $8 billion in assets under management, supporting Hongkong Land’s longer-term goal of growing total AUM to US$100 billion by 2035. Capital freed up will be redeployed into ultra-premium integrated commercial developments, reinforcing Singapore as a core market. These efforts have paid off: Hongkong Land’s share price is now at a five-year high, with its price-to-NAV improving to 0.52 times from about 0.2 times at end-2024.
CDL has followed a similar path. After announcing a $1 billion monetisation programme in 2024, the developer completed or proposed $1.9 billion of divestments in 2025, including the partial sale of South Beach and several overseas assets. These sales, some above book value, have helped lift CDL’s share price by nearly 42% this year and reduced leverage. While the stock still trades at a discount to NAV, analysts see further upside if asset sales continue to outpace acquisitions and gearing declines.
Looking ahead, attention is turning to other developers with untapped potential. JP Morgan has flagged UOL Group as a likely candidate to unlock value via a REIT listing, noting that it is the only major Singapore developer yet to pursue this route. With an estimated $14.3 billion of mature assets that could be injected into a REIT, UOL has the scale to close its valuation gap, provided market conditions are right. Management has acknowledged this possibility, highlighting a strong asset pipeline and growing internal REIT management expertise.
Ho Bee Land presents a contrasting case. Trading at just 0.38 times NAV, it has one of the widest discounts in the sector despite holding a substantial portfolio of high-quality investment properties in Singapore and London. While securitisation or recycling could theoretically unlock value, execution is more complex given potential realised losses on overseas assets acquired near peak valuations. Whether Ho Bee opts to monetise these assets remains an open question, particularly in the absence of analyst coverage.
More broadly, securitisation is regaining momentum in Singapore’s property market. The IPO of Centurion Accommodation REIT and the potential listing of Boustead Industrial REIT underscore renewed investor appetite for yield vehicles. Developers such as GuocoLand, IOI Properties and possibly Hotel Properties may also explore similar paths as market conditions improve.
Overall, lower interest rates, healthier capital markets and shareholder pressure are pushing Singapore developers toward more disciplined capital allocation. As recycling and securitisation strategies gain traction, the sector appears poised for further re-rating, with narrowing NAV discounts signalling a more shareholder-friendly era for property stocks.
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