Abstract
Investment in property stocks is often regarded as a proxy for direct investment in real estate. If so, then one would expect a long term relationship to hold between the time series representations for property stocks and real estate, and that any deviation from the long term relationship would be temporary. This paper tests for such a relationship using the cointegration methodology introduced by Angler and Granger. The cointegration test reveals that such a contemporaneous long term relationship does not exist between the property stock and real estate indices in Singapore.