
Guess where the sweet spot in SREITs is
The tech and telecom sectors drive the demand for space here.
Whilst the Singapore property market is approaching a cyclical bottom in 2018 on the back of abating supply risk, analysts from DBS Group Research reckon that certain sectors will reap the most benefits.
"We expect better prospects for industrial REITs in 2018 given improving business expectations from manufacturers which could result in expansionary demand ahead," analysts from the brokerage firm said, noting that the sweet spot appears to be in the Business Parks space where firms in the Technology, Media and Telecom (TMT) sector continue to drive demand for space.
Also, with the GDP projected to continue growing at 2.5%-2.8% per annum over the next two years, it would be likely for the hotel and office space to ride on as demand for such spaces correlates more closely to a more buoyant economic environment.