Despite the work from home (WFH) default for the most of 2021, Singapore office rents registered a stronger recovery. This is seen in vacancy spaces at key buildings – namely Asia Square Tower and CapitaSpring – close to being fully committed, note the analysts.
DBS Group Research analysts Rachel Tan and Derek Tan remain positive on the Singapore office REITs sector as they see that the reopening of the country’s economy will continue to be a key theme in 2022. The Singapore government, which is looking at having more employees return to the office in 2022, is also another plus for the sector.
The Singapore office REITs sector, which is currently trading at 0.9 times price-to-net asset value (P/NAV) on the whole, is deemed “attractive” to the analysts.
