“Based on Urban Redevelopment Authority (URA) caveats, the office supply pipeline is only 527,000 sq ft for the entire 2019. This is a drastic change from 2018 where 1.4 million sq ft TOP between 1Q-3Q18. With supply easing, we think there is room for rental prices to continue to climb and occupancy rates to improve further, possibly till the next wave of supply, which is coming in 2021/22,” notes OCBC.
SINGAPORE (Jan 8): OCBC Bank is expecting Singapore office REITs to strengthen further in the near-term this year – and possibly, in the process, demand higher rents to bring about positive rental reversion.
In a Tuesday report, OCBC’s credit research team highlights office REITs as a bright spot among Singapore REITs (S-REITs), with the recent trend of strong new office supply looking to reverse in 2019.
