SINGAPORE (Sept 7): Singapore prime office REITs could see a rental recovery soon, according to a report by Religare Capital Markets.

Religare analyst Tata Goeyardi notes that the unit price performances of prime office REITs such as Capitaland Commercial Trust (CCT) and Keppel REIT (KREIT) typically outperformed the FSTREI Index when rentals are climbing. In fact, their unit prices would start to run one or two quarters ahead of the rental price recovery.

Goeyardi expects unit prices of prime office REITs to start outperforming the SREITs index by as early as 2H16, given that “near term supply in the downtown region is set to subside from 1H17 onward and demand returns to historical average levels”.

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