Broker Name: OCBC Group Research
Date of Report: 14 January 2026
Excerpt from OCBC Group Research report.
Report Summary
- Singapore’s property sector is experiencing renewed investor confidence, outperforming the broader market due to lower interest rates, government capital market reforms, and effective value unlocking strategies by property companies.
- Key drivers include a more accommodating interest rate environment, increased capital market activity (such as new indices and liquidity programs), and strategic initiatives (capital recycling, asset sales, and share buybacks) by major developers to enhance shareholder returns.
- The sector’s real estate indices, especially those tracking developers, have delivered strong total returns in 2025 and early 2026, exceeding the main STI performance.
- Targeted screening identifies property stocks with robust fundamentals, low valuations, and potential for privatization, with several counters highlighted for their attractive metrics.
- The outlook for residential property prices is for modest appreciation (1–3% in 2026), with supply ramping up from both government land sales and public housing, which may moderate price growth and resale demand.
- Singapore’s construction sector is set for a multi-year upcycle, bolstered by infrastructure, hospitality, and housing projects, with sustainability emerging as a key differentiator for firms.
- Real estate investment managers are expected to benefit from recurring fee income and inflows from government programs, though interest rate risks remain.
- S-REITs are likely to see positive, but moderate, returns as rate cuts support DPU growth, with a focus on quality, strong balance sheets, and Singapore-based assets preferred by investors.
Above is an excerpt from a report by OCBC Group Research. Clients of OCBC Group Research can be the first to access the full report from the OCBC Group Research website: https://www.ocbc.com
