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Singapore office Reits expected to stay resilient despite headwinds for global office landlords

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Raphael Lim

Raphael Lim

Published Tue, Jul 11, 2023 · 05:00 AM
    • Singapore-listed real estate investment trusts with exposure to office assets here, such as Suntec Reit, OUE Commercial Reit and Keppel Reit, have delivered a muted performance over the past 12 months.
    • Singapore-listed real estate investment trusts with exposure to office assets here, such as Suntec Reit, OUE Commercial Reit and Keppel Reit, have delivered a muted performance over the past 12 months. PHOTO: BT FILE

    DESPITE signs of cooling in Singapore’s Central Business District (CBD) office rents, real estate investment trust (Reit) analysts believe local office landlords will remain more resilient than those with overseas assets.

    In the second quarter of 2023, gross effective rent for CBD Grade A office climbed 0.2 per cent quarter on quarter to an average of S$11.33 per square foot per month, according to property consultancy JLL.

    This was a slowdown from the 1.2 per cent and 1.1 per cent quarter-on-quarter growth in Q4 2022 and Q1 2023, respectively, JLL said in a recent report.

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