- Economic headwinds may moderate office growth momentum going into 2023.
- Impact from tech and financial layoffs manageable unless prolonged recession becomes evident.
- Prefer Mapletree Pan Asia Commercial Trust (SGX:N2IU) and CapitaLand Integrated Commercial Trust (SGX:C38U) as key beneficiaries to China reopening. China reopening a game-changer to drive economic recovery, though timing remains uncertain.
Economic headwinds could moderate office rent growth momentum going into 2023.
- - Read this at SGinvestors.io -
- The Singapore economy is expected to slow to 2.2% in 2023 from an expected GDP growth in 2022 of 3.5%, dragged mainly by the manufacturing sector, with also the service sector to possibly run out of steam going into 2023.
Tech and financial layoffs may have an impact; manageable, however.
- - Read this at SGinvestors.io -
- On the other hand, the financial sector has been downsizing its office space (-2ppt) while expanding its workforce by 3% to 4% pa. As such, we do not expect major downsizing from the financial sector in the near term. However, vacancy risks will rise if a prolonged recession becomes evident.
Silver lining may keep Singapore office afloat; China reopening a game-changer.
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Rachel TAN DBS Group Research | Derek TAN DBS Research | https://www.dbs.com/insightsdirect/ 2022-12-14
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