The U.S subprime market crisis started as a US-centric problem. However, the subprime crisis has gradually spilled over to the financial sector. Even traditionally stable investment banks like Bear Stearns, Goldman Sachs, Lehman Brothers, Merrill Lynch and Morgan Stanley, have become casualties in the recent period of credit turmoil. International markets tend to react to news emanating from the US as investors price in expectations of how the crisis would affect their respective markets. While stock markets do react to information through contagion effects, it is not entirely clear how real estate stocks and real estate investment trusts (REITs) would react. This study examines how Singapore stocks in general and real estate stocks in particular, reacted to news on the US subprime crisis since late 2007.