Singapore Office REITs' Improving Prospects Not Yet Priced In -- Market Talk

Dow Jones10:09

0209 GMT - Improving prospects for Singapore's office REITs haven't been priced into their units, say DBS Research Group's Dale Lai and Derek Tan in a note. Rents at office spaces in the core central business district area are likely to increase more than 3% next year, given expected minimal new supply until FY 2028, the analysts say. Decreasing borrowing costs are also likely to boost financial strength of these REITs, they add. DBS expects earnings growth for Singapore's office REIT sector to exceed 2.6% in FY 2026. DBS believes Keppel REIT is best positioned to benefit from these trends given 78% of its portfolio is concentrated in the city-state's most constrained office precincts. (megan.cheah@wsj.com)

(END) Dow Jones Newswires

December 08, 2025 21:09 ET (02:09 GMT)

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