Should I buy Suntec stock in 2025?

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At HelloSafe, our specialists have been closely monitoring Suntec's performance for more than three years. Every month, tens of thousands of users in Singapore rely on us to analyze market trends and identify attractive investment opportunities. Our analyses are provided for informational purposes only and should not be considered investment advice. In line with our ethical charter, we have never been, and will never be, compensated by Suntec.

What is Suntec ?

How much is Suntec stock?

The price of Suntec stock is rising this week. At present, Suntec is trading at SGD 1.14, showing a 0.88% increase over the past 24 hours and a 0.10% gain for the week. Its market capitalization stands at SGD 3.35 billion, with a 3-month average daily volume of 5.92 million shares.

Suntec remains a defensive choice for Singapore investors seeking stable income, but short-term price swings may occur. A low beta indicates that Suntec shares generally experience lower volatility compared to the broader market.

Our full analysis on Suntec stock

We have conducted a rigorous review of Suntec REIT’s latest quarterly results and evaluated its stock performance over the past three years. Leveraging our proprietary algorithms—which synthesize financial metrics, technical signals, market positioning, and peer benchmarking—we present a comprehensive assessment of Suntec REIT’s investment prospects. With underlying fundamentals signalling renewed momentum, the central question arises: why could Suntec REIT soon represent a compelling entry point into Singapore’s resilient commercial real estate sector for 2025?

Recent Performance and Market Context

Stock Price Movement Suntec REIT’s unit price stands at SGD 1.14 as of May 9, 2025, marking a 6.54% gain over the past year and a steady upward move of 1.79% in the last six months. Notably, in the face of heightened real estate market volatility across Singapore and the Asia-Pacific, this upward price resilience contrasts favorably with broader REIT peers and spotlights strengthening investor confidence. The recent 52-week range, from SGD 1.03 (near-term support) to SGD 1.38 (resistance), reflects disciplined trading activity and underpins a solid base for future appreciation.

Positive Recent Events Suntec REIT’s Q1 2025 financials showcase distributable income growth (+4.3% YoY, SGD 45.9 million) and a 3.4% YoY rise in DPU to 1.563 cents. This consistent operational execution underpins its stable yield proposition amid persistent macro headwinds. From a strategic perspective, the successful refinancing of SGD 730 million in maturing debt not only generates SGD 1.8 million annual interest cost savings but also reinforces the trust’s financial flexibility and future cash flow reliability.

Favorable Market Backdrop Singapore’s real estate sector continues to benefit from robust governmental policy, a strengthening MICE (Meetings, Incentives, Conferences and Exhibitions) ecosystem, and sustained international capital interest. The city-state’s stature as a global business and tourism hub—complemented by the Singapore Tourism Board’s Tourism 2040 roadmap—forecast enduring demand for prime office and retail spaces. Furthermore, anticipated monetary policy easing in advanced economies may gradually reduce financing costs for REITs, providing an underappreciated earnings lever for Suntec in the medium term.

Technical Analysis

Core Technical Indicators At present, short-term technicals for Suntec REIT are mixed to slightly bearish:

• The Relative Strength Index (RSI) at 43.62 resides below neutral, hinting at mildly oversold conditions that could presage an impending reversal as value-oriented investors step in.
• The MACD (-0.002) aligns with the RSI, suggesting the market is in the latter stages of a consolidation or corrective phase.

Moving Averages and Support/Resistance While the price hovers just below the 20-, 50-, and 100-day moving averages (all clustered near SGD 1.135–1.144), the fact that the 200-day simple moving average (SGD 1.133) is effectively at par with current pricing suggests the REIT is nearing a long-term mean reversion opportunity. Strong support levels at SGD 1.127 and 1.124 reinforce the likelihood of a technical floor, while upside resistance at SGD 1.144 and 1.147—if breached—could catalyze a phase of renewed accumulation and upside momentum.

Favorable Short- to Medium-Term Structure Despite sell signals across the suite of moving averages, price action near multi-month lows amplifies the case for mean-reversion and cyclical rotation. Historically, Suntec REIT has demonstrated a pattern where technical pullbacks were progressively met by income-seeking investors, setting the stage for a new bullish phase—especially in an environment of stabilizing or declining interest rates.

Fundamental Analysis

Revenue Growth, Profitability & Expansion FY2024 revenue stood at SGD 463.56 million, with net income of SGD 126.78 million and total distributable income continuing to advance YoY. Management’s disciplined expansion and asset optimization—in Singapore, Australia, and the UK—has resulted in an over SGD 10.95 billion asset base, diversified across premier commercial, retail, and office assets. Noteworthy is the broad-based operational improvement across the portfolio in Q1 2025, despite localised weakness at 55 Currie Street, Adelaide.

Valuation: A Clear Discount to Book and Peer Appeal Suntec REIT currently trades at a price-to-book (P/B) of 0.52, implying a substantial discount compared to both its net asset value and the Singapore REIT average. Even with a price-to-earnings (P/E) ratio of 29.34—higher than some industrial peers—the discounted book valuation and robust asset backing frame the narrative for capital appreciation as sectoral sentiment improves. The attractive 5.53% dividend yield, consistently paid and supported by growing distributable income, seems particularly appealing relative to Singapore’s risk-free rate and domestic inflation.

Structural Strengths Several facets distinguish Suntec REIT:

• Market-leading commercial addresses in Singapore’s prized CBD (Suntec City, MBFC, One Raffles Quay)
• Diversification across mature and growth markets (e.g., Australia’s Sydney/Melbourne hubs and UK’s Central London commercial core)
• Prudent portfolio rebalancing and asset enhancement initiatives
• Management’s proven ability to refinance and optimize capital structure, protecting long-term returns

These attributes—supported by visible rent reversions in the Singapore office segment (expected +1% to 5% in 2025)—provide a defensive backbone while preserving upside optionality as economic cycles turn.

Volume and Liquidity

Sustained Trading Volume: Robust Demand Suntec REIT registers an average daily trading volume of 5.92 million shares, indicating healthy institutional and retail participation. Such sustained liquidity lends itself to dynamic and efficient price discovery, an essential trait for both long-term holders and tactical investors.

Float Supporting Dynamic Valuation With a market capitalization of SGD 3.345 billion and an accessible float, Suntec is less susceptible to illiquidity-driven price distortions, allowing investors to transact meaningful positions at tight spreads. This liquidity, combined with the security of blue-chip underlying assets, tends to anchor valuation, mitigating the risk of unwarranted dislocations during market gyrations.

Catalysts and Positive Outlook

Upcoming Drivers of Growth

• MICE Renaissance: With Suntec’s flagship convention and exhibition center benefiting from the resurgence in international events and tourism, forward revenue contributions look set to rise, amplifying rental income streams and frequency of re-leasing at improved rates.
• Portfolio Refresh and Refurbishments: Ongoing asset enhancements, particularly in the retail and office segment, will drive tenant retention and incremental valuation over the coming quarters.
• Interest Rate Tailwinds: The projected global shift to an interest rate easing cycle could deliver lower borrowing costs, improving distributable income margins and boosting DPU growth.
• ESG Strengthening: Suntec’s increasing emphasis on sustainable property operation attracts major international tenants and aligns with global REIT investors’ ESG mandates, reinforcing long-term demand.

Favorable Regulatory and Macro Context Singapore’s supportive regulatory framework for REITs—such as tax-free distributions and CPFIS inclusion—continues to draw both domestic and global flows into Suntec units. The government’s continued focus on infrastructural vibrancy and urban renewal creates a fertile backdrop for REITs with prime urban exposure.

Investment Strategies

Short-Term Perspective: Current technical support near SGD 1.12 and the convergence of price to long-term moving averages provide classic parameters for contrarian or value-seeking entry points. For active traders, tactical positions taken ahead of the July 2025 earnings season may benefit from positive operational surprises or dividend optimism.

Medium-Term View: Building positions around cyclical technical lows—especially during phases of heightened macro headline risk—has historically been rewarded as Suntec’s dividend yield buffers capital downside and positions portfolios for a rebound. The ongoing asset enhancement and refinancing-driven cost savings are further tailwinds likely to be reflected in results over the next 2–4 quarters.

Long-Term Outlook: Suntec’s best-in-class asset base, experienced management, and pan-Asian/UK footprint furnish genuine compounding potential for those with multi-year horizons. Should MICE activity and office demand persistently recover, distributable income upgrades and gradual share price normalization toward book value appear achievable. The REIT’s alignment with Singapore’s infrastructural ambitions and its scale should appeal to those undertaking core property allocations in diversified portfolios.

Ideal Positioning The convergence of technical support, operational momentum, improved cost structure, and clear growth levers places Suntec REIT at an inflection point. Investors initiating exposure at the current level could find themselves strategically positioned ahead of a new cycle of asset re-rating and yield compression in the sector.

Is it the Right Time to Buy Suntec REIT?

Key Strengths Recap

• Attractive Yield (5.53%) and tax-advantaged income
• Deep discount to NAV with a P/B of just 0.52
• Strong, diversified portfolio across Singapore, Australia, and the UK
• Operational momentum: positive YoY growth in distributable income and DPU
• Successful refinancing drives cost savings and enhances financial security
• Sustained market liquidity and robust trading volumes

Projection and Opportunity Suntec REIT’s fundamentals justify renewed interest: the combination of prime, resilient assets with robust management, attractive yield, and a substantial valuation discount converges at a moment when macro headwinds are set to abate. The technical picture, though presently subdued, seems to be laying the foundation for a bullish rotation as sentiment and the rate environment stabilise. For investors seeking a blend of reliable income and capital appreciation potential with strong liquidity, Suntec REIT may be entering a new era of upside promise.

In this context, Suntec REIT emerges as a particularly timely consideration for Singaporean and regional investors intent on participating in the next phase of commercial property growth. The metrics, management delivery, and macro tailwinds now aligning suggest that 2025 could very well be the year Suntec REIT shifts from consolidation to renewed outperformance—an opportunity that is increasingly difficult to ignore for discerning, yield-focused portfolios.

How to buy Suntec stock in Singapore?

Buying Suntec REIT (SGX: T82U) stock online has never been more straightforward or secure for Singapore investors, thanks to MAS-regulated brokerage platforms. Whether you prefer direct ownership through spot buying or seek more flexible trading via CFDs (contracts for difference), both options are readily available online, offering different risk and reward profiles. Spot buying involves holding the actual shares, ideal for dividend-seekers, while CFD trading allows potential gains from rising or falling prices, often with leverage. For a full comparison of fees and platforms, see our broker comparison table further down the page.

Spot Buying

Spot buying means purchasing actual Suntec REIT units on the Singapore Exchange (SGX). As a direct shareholder, you benefit from dividend distributions and price appreciation. Most Singapore brokers charge a fixed commission per trade, often around SGD 5 to SGD 10 per order, together with platform or custody fees.

Example with a SGD 1,000 stake

If the Suntec REIT unit price is SGD 1.14, you can buy approximately 873 units with SGD 1,000 (accounting for an estimated SGD 5 brokerage fee: (SGD 1,000 - SGD 5) / 1.14 ≈ 873 units).

Gain scenario:
If the Suntec REIT unit price rises by 10%, your holding increases to SGD 1,100 in value.
Result: +SGD 100 gross gain, or +10% on your initial investment.

Trading via CFD

CFD trading on Suntec REIT units allows you to speculate on price moves without owning the underlying asset. CFDs often offer leverage, magnifying both gains and losses. Fee structures usually include the bid-ask spread and overnight financing charges if you hold positions beyond a day.

Example with a SGD 1,000 stake and 5x leverage

You open a CFD position on Suntec REIT with 5x leverage, giving you market exposure of SGD 5,000.

Gain scenario:
If Suntec REIT rises by 8%, your position appreciates by 8% × 5 = 40%.
Result: +SGD 400 gain on your original SGD 1,000 outlay (excluding spreads and overnight fees).

Final Advice

Before buying Suntec REIT units or trading CFDs, carefully compare broker fees, commissions, and trading conditions—small differences can impact your returns over time. Your preferred method depends on your goals: direct ownership for long-term income and dividends, or CFD trading for short-term strategies and leverage. Review our broker comparison table below to help you choose the best fit for your needs.

Our 7 tips for buying Suntec stock

The latest news about Suntec

Suntec REIT reports strong Q1 2025 performance with higher distributable income and DPU.
Q1 2025 results highlight a 4.3% year-on-year increase in distributable income to SGD 45.9 million, with the distribution per unit up 3.4% at 1.563 cents. These improvements demonstrate operational resilience, especially given the softness in broader market sentiment. Suntec REIT’s flagship Singapore properties, including Suntec City Mall and its prime office holdings, contributed significantly to these gains, with only the Adelaide asset underperforming, further emphasizing the strength of the Singapore portfolio.

Successful SGD 730 million debt refinancing to lower interest expenses supports capital structure stability.
Suntec REIT has completed the refinancing of SGD 730 million in loans maturing in 2025 and 2026, yielding annual savings of approximately SGD 1.8 million in interest costs. This prudent financial management strengthens the REIT’s debt profile, boosts investor confidence regarding near-term liquidity, and helps mitigate some of the impact from a still-elevated financing environment.

Stable Singapore office portfolio underpinned by healthy occupancy and modest positive rent reversions.
Suntec’s core Singapore office assets continue to benefit from robust occupancy and positive rental reversion, with management guiding for further rent increases in the low single digits over the coming quarters. This outlook reflects both the defensive positioning of Suntec’s prime CBD assets and supportive government and tourism initiatives, which continue to underpin demand in the local office market.

Interest rate easing cycle in major economies presents a potential tailwind for future earnings.
Market consensus anticipates a gradual easing of interest rates globally, a development that could meaningfully reduce Suntec REIT’s financing costs. Given the REIT's substantial debt and recent refinancing, any notable drop in rates will further improve interest cover ratios, support distributable income growth, and buffer the attractiveness of its steady 5.53% dividend yield for Singapore-based unitholders.

Technical indicators currently show a bearish short-term outlook despite strong fundamentals.
All major technical signals, including RSI (43.62), MACD (-0.002), and moving averages, point to a sell bias, with the stock trading below key support and resistance levels. Despite these short-term headwinds in price momentum, Suntec REIT’s mid- to long-term prospects remain anchored by stable underlying assets and consistent cash distribution, suggesting current price weakness may present accumulation opportunities for income-focused investors.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.