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4 Stocks This Week (Real Estate) [10 January 2020] – City Developments; UOL; CapitaLand; OUE

Investing in individual private properties in Singapore can cost you a million dollars or more. Investing in the stocks listed on the SGX wouldn’t require as much capital.


Real estate has always been a major industry in Singapore. Even though properties can be very expensive, many Singapore investors continue to invest their capital across individual residential, industrial and commercial properties, committing more than $1 million into their investment properties, and/or taking large loans in order to finance these purchases.

But even without at least a few hundred thousand dollars in investment capital, you can still invest in the property sector in Singapore. With numerous real estate developers listed on the Singapore Exchange (SGX), investors can pick and choose the different real estate stocks that they want to invest into.

Read Also: Selling, Buying or Renting Property? 5 Reasons Why You Need A Contract In Black & White With Your Property Agent

In this week’s edition of 4 Stocks This Week, we will be taking a look at four real estate stocks on the SGX that have performed well in 2019.

City Development (SGX: C09)

City Developments Limited (CDL) is one of Singapore’s largest real estate companies with a portfolio of residential, commercial, hospitality and retail space presence in over 26 countries, including China, UK, US, Japan and Australia.

In 2019, the total return for CDL was 37.8%. The stock started 2019 at a share price of $7.54 and is now at $11.244. It’s also worth noting that the year before, 2018, was a poor year for CDL with unexpected cooling measures dampening the real estate sector.

CDL is 48.4% own by Hong Leong Investment Holdings, which is in turn largely own by the Kwek Family. Kwek Leng Beng is also the Executive Chairman of CDL.

UOL Group (SGX: U14)

UOL is one of Singapore’s leading public-listed property companies, with diverse exposure to property developments, property investments, hotels and serviced suites. Listed on the Straits Times Index since 2015, UOL has a market capitalisation of about $7.1 billion.

Similar to most real estate stocks, after a poor 2018, which saw the stock decline from $9.128 (1 Jan 2018) to $6.085 (31 December 2018), UOL rebounded in 2019 with a total return of 37.5%.

Earlier this year, it was announced that the UOL group, along with its hotel subsidiary, the Pan Pacific Hotels Group Limited, has launched a new hotel brand called the Park Royal Collection Hotels & Resort.

UOL is currently trading at a price-to-book value of 0.723 and a price-to-earnings ratio of 14.7.

CapitaLand Ltd (SGX: C31)

As one of Asia’s largest real estate company, most Singaporeans would already know about and have interacted with Capitaland. Its portfolio spans across diversified real estate classes which include commercial, retail, business park, industrial and logistics, integrated development, urban development as well as lodging and residential. The company has a market capitalisation of about $19.3 billion.

For 2019, Capitaland saw a total return of 24.7%. The company is trading at a price-to-book value of 0.871 and a 5-year average dividend yield of about 3.186. Its price-to-earnings ratio is currently at 10.59.

It was observed in an SGX market update report that CapitaLand has the highest net institutional inflow among real estate developer stocks in December 2019 at $42.4 million.

OUE Ltd (SGX: LJ3)

The smallest of the four stocks being discussed today, OUE is a real estate owner, developer and operator with real estate properties located in Asia and the United States. The group also manages and owns a significant portion of two other SGX-listed REITs: OUE Hospitality Trust (SGX: SK7) and OUE Commercial REIT (SGX: TS0U).

For 2019, OUE saw a total return of 12.9% for the year.

With a market capitalisation of about $1.47 billion and a share price of $1.498, the stock is currently trading at a price-to-earnings ratio of 8.18.

Read Also: Planning To Buy A Property In 2020? Here Are 5 Trends You Should Look Out For

To find out more about how some of the leading real estate stocks on the SGX have performed in 2019, you can refer to this SGX Market Update report published on 10 January 2020.

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4 Stocks This Week is not a recommendation from us to buy or sell any of these stocks. For investors who are keen to find out more, you should continue researching about them before making your investment decisions.