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Industrial real estate investment trusts (REITs) here that own Business Parks are anticipated to reap the most benefits as the local property market recovers, reported the Singapore Business Review.
According to DBS Group Research analysts, this segment is expected to flourish further as the city-state’s property sector approaches a cyclical bottom next year alongside stabilising supply.
Another reason for the sweet spot on Business Parks is the strong, sustained demand for such space from companies in the Technology, Media and Telecom (TMT) sector.
“We expect better prospects for industrial REITs in 2018 given improving business expectations from manufacturers which could result in expansionary demand ahead,” noted analysts.
Meanwhile, DBS Group Research is also optimistic on the outlook of the office space and hotel segments, as Singapore’s economy is forecasted to expand by 2.5 percent to 2.8 percent per annum in the next two years. This is because a thriving economy would lead to a stronger demand for such properties.
This article was edited by Denise Djong.
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