Mirvac and Stockland have been oversold and a residential downturn that may not be as severe as many people expect will see these stocks get a greater boost in the rebound over other listed REITs such as Ingenia Communities and Lifestyle Communities, new UBS analysis shows.

Equity market expectations that the Reserve Bank of Australia will raise the cash rate to 4 per cent or above from the current 2.35 per cent are too bearish and this has hit the share price of the two larger listed developers more than other stocks, UBS analyst Tom Bodor said.