Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Asia’s leading multi-asset exchange

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

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<li>
Real Estate Developers (excluding REITs) was the third best-performing sector in March, with a total return of +2.7%. March was also the third straight month of positive returns for the sector, after it registered total returns of +0.7% and +7.8% in Feb and Jan respectively. 
	 </li>
	<li>
The Real Estate Developers sector also saw strong investor interest in March, with net institutional inflows of S$25.9 million. It was a net buy sector for the second straight month, after chalking up net inflows of S$32.1 million in February, SGX data showed. 
	 </li>
	<li>In the 2019 YTD, the five best-performing, largest capitalised real estate developers were: Hong Fok (+34.6%), OUE (+23.8%), CapitaLand (+18.6%), Yanlord Land (+17.2%), and UOL Group (+16.0%). The five averaged a total return of +22.0% in the YTD.</li>
</ul>
There are about 70 real estate developers and operators listed on SGX. Among these, the 20 largest capitalised property plays have a combined market cap of over S$80 billion.

Positive Returns, Investor Interest

Real Estate Developers (excluding REITs) was the third best-performing sector in March, with a total return of +2.7%, after Information Technology’s +4.1% total return and the REIT sector’s +3.2% total return. March was also the third straight month of positive returns for the Real Estate (non-REITs) sector, after registering total returns of +0.7% and +7.8% in February and January respectively.

The Real Estate Developers sector saw strong investor interest in March, with net institutional inflows of S$25.9 million. It was a net buy sector for the second straight month, after chalking up net inflows of S$32.1 million in February, SGX data showed.
<figure>
 <img src="https://api2.sgx.com/sites/default/files/2019-04/tia.PNG" alt="PicT">
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YTD Best Performers 
In the 2019 year-to-date, the five best-performing, largest capitalised real estate developers were: Hong Fok Corp (+34.6%), OUE Ltd (+23.8%), CapitaLand Ltd (+18.6%), Yanlord Land Group (+17.2%), and UOL Group (+16.0%). These five stocks have averaged a total return of +22.0% in the YTD, bringing their one-year and three-year total returns to +0.4% and +27.4% respectively.

The table below details the 20 largest capitalised real estate developers on SGX, sorted by YTD total return.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap (S$M)
			</td>
			<td>
			Total Return YTD (%)
			</td>
			<td>
			Total Return 1Y (%)
			</td>
			<td>
			Total Return 3Y (%)
			</td>
			<td>
			P/B (x)
			</td>
			<td>
			Div Yld (%)
			</td>
		</tr>
<tr>
<td>
			HONG FOK CORP
			</td>
			<td>
			H30
			</td>
			<td>
			798
			</td>
			<td>
			34.6
			</td>
			<td>
			21.1
			</td>
			<td>
			33.4
			</td>
			<td>
			0.3
			</td>
			<td>
			1.1
			</td>
		</tr>
<tr>
<td>
			OUE LTD
			</td>
			<td>
			LJ3
			</td>
			<td>
			1,596
			</td>
			<td>
			23.8
			</td>
			<td>
			0.1
			</td>
			<td>
			12.0
			</td>
			<td>
			0.4
			</td>
			<td>
			1.1
			</td>
		</tr>
<tr>
<td>
			CAPITALAND LTD
			</td>
			<td>
			C31
			</td>
			<td>
			15,281
			</td>
			<td>
			18.6
			</td>
			<td>
			5.6
			</td>
			<td>
			35.2
			</td>
			<td>
			0.8
			</td>
			<td>
			3.3
			</td>
		</tr>
<tr>
<td>
			YANLORD LAND GROUP
			</td>
			<td>
			Z25
			</td>
			<td>
			2,743
			</td>
			<td>
			17.2
			</td>
			<td>
			-9.8
			</td>
			<td>
			25.5
			</td>
			<td>
			0.6
			</td>
			<td>
			4.6
			</td>
		</tr>
<tr>
<td>
			UOL GROUP LTD
			</td>
			<td>
			U14
			</td>
			<td>
			5,986
			</td>
			<td>
			16.0
			</td>
			<td>
			-15.0
			</td>
			<td>
			30.9
			</td>
			<td>
			0.6
			</td>
			<td>
			2.4
			</td>
		</tr>
<tr>
<td>
			CITY DEVELOPMENTS
			</td>
			<td>
			C09
			</td>
			<td>
			8,452
			</td>
			<td>
			15.4
			</td>
			<td>
			-26.0
			</td>
			<td>
			17.4
			</td>
			<td>
			0.9
			</td>
			<td>
			0.9
			</td>
		</tr>
<tr>
<td>
			HONGKONG LAND
			</td>
			<td>
			H78
			</td>
			<td>
			22,895
			</td>
			<td>
			14.9
			</td>
			<td>
			9.1
			</td>
			<td>
			28.4
			</td>
			<td>
			0.4
			</td>
			<td>
			3.1
			</td>
		</tr>
<tr>
<td>
			FRASERS PROPERTY
			</td>
			<td>
			TQ5
			</td>
			<td>
			5,286
			</td>
			<td>
			14.2
			</td>
			<td>
			-1.6
			</td>
			<td>
			25.7
			</td>
			<td>
			0.7
			</td>
			<td>
			4.7
			</td>
		</tr>
<tr>
<td>
			OXLEY HOLDINGS
			</td>
			<td>
			5UX
			</td>
			<td>
			1,298
			</td>
			<td>
			8.0
			</td>
			<td>
			-31.3
			</td>
			<td>
			6.7
			</td>
			<td>
			0.9
			</td>
			<td>
			3.9
			</td>
		</tr>
<tr>
<td>
			GUOCOLAND LTD
			</td>
			<td>
			F17
			</td>
			<td>
			2,296
			</td>
			<td>
			7.8
			</td>
			<td>
			-3.3
			</td>
			<td>
			21.7
			</td>
			<td>
			0.5
			</td>
			<td>
			3.6
			</td>
		</tr>
<tr>
<td>
			PERENNIAL REAL ESTATE
			</td>
			<td>
			40S
			</td>
			<td>
			1,072
			</td>
			<td>
			7.3
			</td>
			<td>
			-20.9
			</td>
			<td>
			-27.0
			</td>
			<td>
			0.4
			</td>
			<td>
			0.6
			</td>
		</tr>
<tr>
<td>
			HO BEE LAND LTD
			</td>
			<td>
			H13
			</td>
			<td>
			1,690
			</td>
			<td>
			7.2
			</td>
			<td>
			5.2
			</td>
			<td>
			30.1
			</td>
			<td>
			0.5
			</td>
			<td>
			3.2
			</td>
		</tr>
<tr>
<td>
			UNITED INDUSTRIAL CORP
			</td>
			<td>
			U06
			</td>
			<td>
			4,154
			</td>
			<td>
			7.0
			</td>
			<td>
			-9.6
			</td>
			<td>
			1.5
			</td>
			<td>
			0.6
			</td>
			<td>
			1.2
			</td>
		</tr>
<tr>
<td>
			WING TAI HOLDINGS
			</td>
			<td>
			W05
			</td>
			<td>
			1,573
			</td>
			<td>
			5.7
			</td>
			<td>
			4.7
			</td>
			<td>
			23.2
			</td>
			<td>
			0.5
			</td>
			<td>
			1.5
			</td>
		</tr>
<tr>
<td>
			SINARMAS LAND
			</td>
			<td>
			A26
			</td>
			<td>
			1,107
			</td>
			<td>
			4.0
			</td>
			<td>
			-29.1
			</td>
			<td>
			-41.8
			</td>
			<td>
			0.5
			</td>
			<td>
			0.8
			</td>
		</tr>
<tr>
<td>
			FRAGRANCE GROUP
			</td>
			<td>
			F31
			</td>
			<td>
			920
			</td>
			<td>
			1.5
			</td>
			<td>
			-9.6
			</td>
			<td>
			-20.8
			</td>
			<td>
			0.7
			</td>
			<td>
			1.5
			</td>
		</tr>
<tr>
<td>
			UNITED OVERSEAS AUSTRALIA
			</td>
			<td>
			EH5
			</td>
			<td>
			906
			</td>
			<td>
			0.8
			</td>
			<td>
			-4.6
			</td>
			<td>
			43.0
			</td>
			<td>
			0.6
			</td>
			<td>
			3.8
			</td>
		</tr>
<tr>
<td>
			FIRST SPONSOR GROUP
			</td>
			<td>
			ADN
			</td>
			<td>
			844
			</td>
			<td>
			0.8
			</td>
			<td>
			6.2
			</td>
			<td>
			23.1
			</td>
			<td>
			0.6
			</td>
			<td>
			1.8
			</td>
		</tr>
<tr>
<td>
			BUKIT SEMBAWANG ESTATES
			</td>
			<td>
			B61
			</td>
			<td>
			1,460
			</td>
			<td>
			0.0
			</td>
			<td>
			-3.9
			</td>
			<td>
			51.0
			</td>
			<td>
			1.1
			</td>
			<td>
			0.7
			</td>
		</tr>
<tr>
<td>
			UNITED ENGINEERS
			</td>
			<td>
			U04
			</td>
			<td>
			1,607
			</td>
			<td>
			-0.4
			</td>
			<td>
			-2.7
			</td>
			<td>
			17.1
			</td>
			<td>
			0.8
			</td>
			<td>
			1.2
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			10.2
			</td>
			<td>
			-5.8
			</td>
			<td>
			16.8
			</td>
			<td>
			0.6
			</td>
			<td>
			2.3
			</td>
		</tr>
</tbody></table>
Source: Bloomberg &amp; StockFacts (data as of 8 April 2019)

Residential Sector Outlook

Following the Singapore government’s move in the second half of 2018 to further tighten rules on property purchases, which included higher stamp duty rates and tougher loan-to-value limits, home buyers have been more cautious, resulting in slower sales and lower transaction volumes, analysts noted.

Analysts expect residential property prices to be range-bound in 2019, with forecasts of small decline to a small increase. OCBC Investment Research said in a <a href="https://research.sginvestors.io/2019/04/sg-residential-sector-ocbc-investment-research-2019-04-02.html">report</a> published 2 April 2019 that it is keeping its private residential property price growth forecast of -3% to 2% for this year, but noted the full-year figure could come in at the lower end of its projections.

Last week, the Urban Redevelopment Authority (URA) released the <a href="https://www.ura.gov.sg/Corporate/Media-Room/Media-Releases/pr19-16">flash estimate</a> of Singapore’s private residential property price index for the first quarter of 2019. The private residential property index fell 0.6% in 1Q 2019 from the previous quarter, extending the 0.1% decline seen in 4Q 2018. On a year-on-year basis, the index gained 3.2%. The landed property segment remained resilient in 1Q 2019, with a rise of 1.1% QoQ, while the non-landed property segment suffered a decline of 1.0%.

The flash estimates are compiled based on transaction prices given in contracts submitted for stamp duty payment and data on units sold by developers up till mid-March. The URA will release its full set of real estate statistics for 1Q 2019 on 26 April 2019.
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Real Estate Developers (excluding REITs) was the third best-performing sector in March, with a total return of +2.7%. March was also the third straight month of positive returns for the sector, after it registered total returns of +0.7% and +7.8% in Feb and Jan respectively. 
	 
	
The Real Estate Developers sector also saw strong investor interest in March, with net institutional inflows of S$25.9 million. It was a net buy sector for the second straight month, after chalking up net inflows of S$32.1 million in February, SGX data showed.  
	 
	In the 2019 YTD, the five best-performing, largest capitalised real estate developers were: Hong Fok (+34.6%), OUE (+23.8%), CapitaLand (+18.6%), Yanlord Land (+17.2%), and UOL Group (+16.0%). The five averaged a total return of +22.0% in the YTD.

There are about 70 real estate developers and operators listed on SGX. Among these, the 20 largest capitalised property plays have a combined market cap of over S$80 billion.

Positive Returns, Investor Interest

Real Estate Developers (excluding REITs) was the third best-performing sector in March, with a total return of +2.7%, after Information Technology’s +4.1% total return and the REIT sector’s +3.2% total return. March was also the third straight month of positive returns for the Real Estate (non-REITs) sector, after registering total returns of +0.7% and +7.8% in February and January respectively.

The Real Estate Developers sector saw strong investor interest in March, with net institutional inflows of S$25.9 million. It was a net buy sector for the second straight month, after chalking up net inflows of S$32.1 million in February, SGX data showed.

      
    
    PicT
YTD Best Performers 
In the 2019 year-to-date, the five best-performing, largest capitalised real estate developers were: Hong Fok Corp (+34.6%), OUE Ltd (+23.8%), CapitaLand Ltd (+18.6%), Yanlord Land Group (+17.2%), and UOL Group (+16.0%). These five stocks have averaged a total return of +22.0% in the YTD, bringing their one-year and three-year total returns to +0.4% and +27.4% respectively.

The table below details the 20 largest capitalised real estate developers on SGX, sorted by YTD total return.




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			Total Return YTD (%)
			
			
			Total Return 1Y (%)
			
			
			Total Return 3Y (%)
			
			
			P/B (x)
			
			
			Div Yld (%)
			
		


			HONG FOK CORP
			
			
			H30
			
			
			798
			
			
			34.6
			
			
			21.1
			
			
			33.4
			
			
			0.3
			
			
			1.1
			
		


			OUE LTD
			
			
			LJ3
			
			
			1,596
			
			
			23.8
			
			
			0.1
			
			
			12.0
			
			
			0.4
			
			
			1.1
			
		


			CAPITALAND LTD
			
			
			C31
			
			
			15,281
			
			
			18.6
			
			
			5.6
			
			
			35.2
			
			
			0.8
			
			
			3.3
			
		


			YANLORD LAND GROUP
			
			
			Z25
			
			
			2,743
			
			
			17.2
			
			
			-9.8
			
			
			25.5
			
			
			0.6
			
			
			4.6
			
		


			UOL GROUP LTD
			
			
			U14
			
			
			5,986
			
			
			16.0
			
			
			-15.0
			
			
			30.9
			
			
			0.6
			
			
			2.4
			
		


			CITY DEVELOPMENTS
			
			
			C09
			
			
			8,452
			
			
			15.4
			
			
			-26.0
			
			
			17.4
			
			
			0.9
			
			
			0.9
			
		


			HONGKONG LAND
			
			
			H78
			
			
			22,895
			
			
			14.9
			
			
			9.1
			
			
			28.4
			
			
			0.4
			
			
			3.1
			
		


			FRASERS PROPERTY
			
			
			TQ5
			
			
			5,286
			
			
			14.2
			
			
			-1.6
			
			
			25.7
			
			
			0.7
			
			
			4.7
			
		


			OXLEY HOLDINGS
			
			
			5UX
			
			
			1,298
			
			
			8.0
			
			
			-31.3
			
			
			6.7
			
			
			0.9
			
			
			3.9
			
		


			GUOCOLAND LTD
			
			
			F17
			
			
			2,296
			
			
			7.8
			
			
			-3.3
			
			
			21.7
			
			
			0.5
			
			
			3.6
			
		


			PERENNIAL REAL ESTATE
			
			
			40S
			
			
			1,072
			
			
			7.3
			
			
			-20.9
			
			
			-27.0
			
			
			0.4
			
			
			0.6
			
		


			HO BEE LAND LTD
			
			
			H13
			
			
			1,690
			
			
			7.2
			
			
			5.2
			
			
			30.1
			
			
			0.5
			
			
			3.2
			
		


			UNITED INDUSTRIAL CORP
			
			
			U06
			
			
			4,154
			
			
			7.0
			
			
			-9.6
			
			
			1.5
			
			
			0.6
			
			
			1.2
			
		


			WING TAI HOLDINGS
			
			
			W05
			
			
			1,573
			
			
			5.7
			
			
			4.7
			
			
			23.2
			
			
			0.5
			
			
			1.5
			
		


			SINARMAS LAND
			
			
			A26
			
			
			1,107
			
			
			4.0
			
			
			-29.1
			
			
			-41.8
			
			
			0.5
			
			
			0.8
			
		


			FRAGRANCE GROUP
			
			
			F31
			
			
			920
			
			
			1.5
			
			
			-9.6
			
			
			-20.8
			
			
			0.7
			
			
			1.5
			
		


			UNITED OVERSEAS AUSTRALIA
			
			
			EH5
			
			
			906
			
			
			0.8
			
			
			-4.6
			
			
			43.0
			
			
			0.6
			
			
			3.8
			
		


			FIRST SPONSOR GROUP
			
			
			ADN
			
			
			844
			
			
			0.8
			
			
			6.2
			
			
			23.1
			
			
			0.6
			
			
			1.8
			
		


			BUKIT SEMBAWANG ESTATES
			
			
			B61
			
			
			1,460
			
			
			0.0
			
			
			-3.9
			
			
			51.0
			
			
			1.1
			
			
			0.7
			
		


			UNITED ENGINEERS
			
			
			U04
			
			
			1,607
			
			
			-0.4
			
			
			-2.7
			
			
			17.1
			
			
			0.8
			
			
			1.2
			
		


			Average
			
			
			 
			
			
			 
			
			
			10.2
			
			
			-5.8
			
			
			16.8
			
			
			0.6
			
			
			2.3
			
		

Source: Bloomberg &amp; StockFacts (data as of 8 April 2019)

Residential Sector Outlook

Following the Singapore government’s move in the second half of 2018 to further tighten rules on property purchases, which included higher stamp duty rates and tougher loan-to-value limits, home buyers have been more cautious, resulting in slower sales and lower transaction volumes, analysts noted.

Analysts expect residential property prices to be range-bound in 2019, with forecasts of small decline to a small increase. OCBC Investment Research said in a report published 2 April 2019 that it is keeping its private residential property price growth forecast of -3% to 2% for this year, but noted the full-year figure could come in at the lower end of its projections.

Last week, the Urban Redevelopment Authority (URA) released the flash estimate of Singapore’s private residential property price index for the first quarter of 2019. The private residential property index fell 0.6% in 1Q 2019 from the previous quarter, extending the 0.1% decline seen in 4Q 2018. On a year-on-year basis, the index gained 3.2%. The landed property segment remained resilient in 1Q 2019, with a rise of 1.1% QoQ, while the non-landed property segment suffered a decline of 1.0%.

The flash estimates are compiled based on transaction prices given in contracts submitted for stamp duty payment and data on units sold by developers up till mid-March. The URA will release its full set of real estate statistics for 1Q 2019 on 26 April 2019.



Five Largest, Best-Performing Developers Averaged 22% YTD Total Return       