They analysts think that the overall retail sector should maintain favorable demand supply dynamics into 2025, as the tight supply landscape has seen most dominant malls which are owned by CICT, FCT, Lendlease Global Commercial REIT (SGX:JYEU
) (LREIT) and Mapletree Pan Asia Commercial Trust (SGX:N2IU) (MPACT) commanding industry-leading more than 99% occupancies and high rental growth.
Going into 2025, DBS Group Research analysts Geraldine Wong and Derek Tan say that they continue to prefer suburban retail REITs given clearer organic growth visibility. They have named CapitaLand Integrated Commercial Trust (SGX:C38U) (CICT) and Frasers Centrepoint Trust (SGX:J69U) (FCT) as their top sector picks.
Singapore’s retail scene has “beaten all odds” since the pandemic and in 2024, they say. Suburban retail sales stayed resilient above 15% to 20% even though there was lower traffic to malls, while centrally located malls enjoyed higher footfall and sales on the rebound of tourists.
