Additional Singapore tailwinds include a stable property backdrop. CBRE says that Core CBD (Grade A) vacancy compressed to a record low of 3.3% in 1Q2026, down from 4.5% in 4Q2025. Islandwide vacancy fell to 5.1% in 1Q2026 from 5.6% in 4Q2025, with improvements recorded across Fringe CBD and Decentralised locations, CBRE Research says.
In a report dated April 13, JP Morgan analysts Mervin Song and Terence Khi recommend a barbell strategy when investing in S-REITs. A barbell approach to investing means putting your money at two extremes—very safe investments on the one hand and high-risk/high-reward investments on the other. It’s designed to balance stability with growth. Often, the ratio of safe investments to high-risk investments is in the ratio of 90 (for safe) vs 10.
For JP Morgan, this means combining the safe investments such as CapitaLand Integrated Commercial Trust (CICT), CapitaLand Ascendas REIT (CLAR), Frasers Centrepoint Trust (FCT) and Keppel DC REIT (KDC REIT) which are likely to benefit from interest cost savings as these REITs are either Singapore-focused or have a Singapore core. Sora is expected to stay low this year, the report indicates. In addition, these four REITs are liquid, have strong sponsors with good (sometimes the best) assets, and are backed by institutional investors.
