- Singapore’s real estate sector to grow modestly as economy enters a soft patch.
- S-REITs have ample defenses against sustained interest rates hikes till the tide turns in late 2023.
- Re-opening story “not dead”, many beneficiaries from re-opening of China’s economy and borders.
- - Read this at SGinvestors.io -
Singapore economy to enter a soft patch; real estate sector to see slowing growth momentum.
- Singapore’s economy is expected to slow to ~2.2% in 2023, averting a recession while inflation is expected to remain sticky at ~6.3%. With this backdrop, DBS economist expects more cautious business and consumer sentiment. Thus, we believe Singapore’s real estate cycle will enter a more modest growth phase, but we still project most sectors to see market rents remaining on an uptrend in 2023.
S-REITs to navigate interest rates and currency headwinds well.
- - Read this at SGinvestors.io -
- That said, we see ample defenses from S-REITs’ high fixed-rate debt ratio and forward currency hedges until interest rates turn in S-REITs favour, which could be sometime in late 2023-2024.
Re-opening story is “not dead”.
- 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 | Dale LAI DBS Research | https://www.dbs.com/insightsdirect/ 2022-12-15
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