Is It Time to Shift from Singapore Banks to S-REITs?
Over the previous yr, and actually over the past 5 years in complete, Singapore banks have considerably outperformed S-REITs (Singapore Actual Property Funding Trusts). Throughout 2024 the three main banks, DBS (+52.57%), UOB (+35.20%), and OCBC (36.52%), delivered sterling complete returns, far exceeding the Straits Instances Index’s 23.53% and dwarfing S-REITs Leaders Index’s disappointing -6.28% loss. This stark distinction raises the query: is it time for traders to rotate from banks to REITs?
Efficiency Overview
S-REITs, STI, and BANKS Complete Returns 2019 – 2025 (Primarily based to 100)
| Complete Returns | Straits Instances Index | iEdge S-REIT Leaders Index | Singapore Banks | Distinction S-REITs vs Banks |
| 2019 | 9.40% | 27.14% | 17.12% | 10.02% |
| 2020 | -8.05% | -0.94% | -2.56% | 1.62% |
| 2021 | 13.56% | 2.75% | 25.20% | -22.45% |
| 2022 | 8.39% | -11.57% | 11.92% | -23.49% |
| 2023 | 4.75% | 5.62% | 5.80% | -0.18% |
| 2024 | 23.53% | -6.28% | 41.40% | -47.68% |
| 2025 (Finish March) | 5.35% | 2.32% | 5.18% | -2.85% |
Supply: SGX, Bloomberg, Golden Part Evaluation. Correct as of 18 April 2025 Singapore banks have thrived within the rising rate of interest setting, with document earnings driving share costs to historic highs. Banks are likely to outperform REITs in periods of rising rates of interest primarily as a result of their core enterprise mannequin advantages…
