Singapore, Jan 21, 2026, 15:01 SGT — Regular session
- UOL shares rose roughly 0.7% to S$10.31 in afternoon trading, building on gains from the past two sessions
- RHB maintained an overweight view on Singapore real estate stocks, citing lower mortgage benchmarks alongside strong pent-up demand
- Traders are focused on URA’s upcoming quarterly property market update scheduled for Jan 23
Shares of UOL Group Limited edged up about 0.7% to S$10.31 by 2:59 p.m. local time Wednesday, pushing the stock’s rally into a second straight session. The Singapore property name saw volume hit around 2.4 million shares, with prices ranging from S$10.05 to S$10.40, according to the company’s investor page. (UOL Group Limited)
This shift is crucial as developers react sharply to changes in funding costs: when mortgages ease, demand usually picks up and balance sheets improve. That sets the stage for a January rally in the sector, despite valuations still trading below underlying asset values.
RHB Bank Singapore analyst Vijay Natarajan pointed to growing momentum in the sector, driven by “healthy wage growth, lower interest rates and pent-up demand,” in a Jan 20 research note cited by The Edge Singapore. He noted that sector discounts to revalued net asset value (RNAV) still hover above 40%, suggesting the sector could climb another 20%–30%. Natarajan also highlighted last year’s new home sales of 10,951 units excluding executive condominiums, and forecast the three-month Singapore Overnight Rate Average (SORA) to drop roughly 185 basis points to 1.2% by December 2025, which would push fixed mortgage rates down to about 1.55%–1.6%. (The Edge Singapore)
RNAV isn’t fixed; it shifts with appraisals and market sentiment. Traders use it as a quick gauge of “what the land and buildings might be worth.” A big discount can spark a rally if rates drop, but it can stick around if investors question asset sales, cash flow, or management’s ability to deliver.
SORA serves as the local benchmark rate, commonly used for home loans. A dip in SORA can lighten monthly payments for certain borrowers and reduce interest expenses for developers handling debt-heavy projects. However, the impact often filters through unevenly and takes time.
UOL finds itself caught in that tug-of-war. The stock typically mirrors sentiment on residential demand and financing conditions, often serving as a barometer for investor expectations on upcoming launches and pricing trends over the next few quarters.
That sensitivity works both ways. If mortgage rates halt their decline or home sales slump beyond forecasts, the rally could reverse fast—especially after such a narrow price surge. Policy changes that curb demand would add fuel to the sell-off.
Traders are set to eye the Urban Redevelopment Authority’s quarterly property market update on Jan 23 for new cues on demand and pricing. (Gov)
