- 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.
