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Picking Out the Best Real Estate Stocks in Singapore

Earlier this week, bourse operator Singapore Exchange Limited  (SGX: S68) had launched SGX Thematic Indicesa suite of new stock market benchmarks for a number of different sectors in Singapore’s stock market.

If you are interested to invest in Singapore real estate stocks, then SGX Thematic Indices may be useful. Among the new indices launched was the SGX Real Estate 20 Index, an index made up of 20 of the largest and most tradeable real estate stocks in Singapore.

Here’s a list of the Top 5 Real Estate stocks in the index along with their index-weights as of November 2015, according to the Singapore Exchange:

The following are some interesting points which I have noted from the index.

  • The five year total annual return for the index was 4.7%.
  • Its weighted-average dividend yield is 4.6%.
  • For context, the SPDR STI ETF (SGX: ES3) – an exchange-traded fund mimicking the market benchmark, the Straits Times Index  (SGX: ^STI) – offered a yield of around 3.3%, as of 2 December 2015.
  • Ascendas REIT and CapitaLand Mall Trust are also the two largest real estate investment trusts (REITs) listed in Singapore.
  • Hongkong Land Holdings is the biggest real estate company of the lot. It has a market cap of $24.7 billion.
  • The real estate index also includes UOL Group Limited (SGX: U14), one of the three newest additions to the Straits Times Index’s 30 components.

The SGX Real Estate 20 Index can be useful as a mini-tour of the movers and shakers within the real estate sector in Singapore’s stock market. The index can also be used as a basis of comparison for how good or bad a real estate stock is when compared to its peers.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.