However, Chan notes in his report dated Sept 20 that demand for dormitory housing is likely to increase after the Ministry of Manpower (MOM) announced a need to moderate demand for non-dormitory accommodation to ensure workers have access to designated accommodations.
Lim and Tan Securities analyst Chan En Jie is maintaining his “buy” call and target price of 58 cents on Centurion Corporation (SGX:OU8
) , whose outlook remains positive with positive rental reversions and a healthy pipeline of dormitory beds.
Given the sharp rise in work permit holders in the construction, marine shipyard and process sectors from 370,000 pre-Covid to 434,000 as at May 2023, more workers are being housed in non-dormitory accommodations, such as residential properties, hotels and hostels.
