Singapore REITs - OCBC Investment Research 2025-02-27: Stick To Domestic Assets

• Real estate assets in Singapore have generally outperformed those located overseas due to more favourable demand-supply conditions.
  • Demand remained healthy, supported by a robust economy which grew 4.4% in 2024, a significant increase from the 1.1% GDP growth recorded in 2023.
  • - Read this at SGinvestors.io -

Retail REITs:

• The retail sector in Singapore showed resilience, with rental reversions for the retail REITs under our coverage ranging from 8.6% (CapitaLand Integrated Commercial Trust (SGX:C38U)'s downtown malls) to 23.2% (Suntec REIT (SGX:T82U)) .
• Following a 4.2% rise in 2023, island-wide prime retail rents increased by 3.6% in 2024, driven by strong leasing demand from food and beverage operators, fashion, and sports brands. Key submarkets like Orchard Road and City Hall/Marina Centre have outperformed due to the recovering tourism sector and the normalisation of office attendance. However, overseas properties, particularly in Hong Kong and China, are facing challenges with negative rental reversions.
• - Read this at SGinvestors.io -
• As growth is predicated on tourism recovery, downtown areas – particularly the Orchard Road belt – are expected to experience higher rental increases in 2025.

Industrial REITs:

• Read more at SGinvestors.io.

OCBC Research Team OCBC Investment Research | https://www.iocbc.com/ 2025-02-27 SGinvestors.io

---