Over the past year, and in fact over the last five years in total, Singapore banks have significantly outperformed S-REITs (Singapore Real Estate Investment Trusts). During 2024 the three major banks, DBS (+52.57%), UOB (+35.20%), and OCBC (36.52%), delivered sterling total returns, far exceeding the Straits Times Index’s 23.53% and dwarfing S-REITs Leaders Index’s disappointing -6.28% loss. This stark contrast raises the question: is it time for investors to rotate from banks to REITs?

Performance Overview

S-REITs, STI, and BANKS Total Returns 2019 – 2025 (Based to 100)

Total Returns	Straits Times Index	iEdge S-REIT Leaders Index	Singapore Banks	Difference 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 (End March)	5.35%	2.32%	5.18%	-2.85%

Source: SGX, Bloomberg, Golden Section Analysis. Accurate as of 18 April 2025 Singapore banks have thrived in the rising interest rate environment, with record profits driving share prices to historic highs. Banks tend to outperform REITs during periods of rising interest rates primarily because their core business model benefits...