What a Trump presidency means for Singapore developers and REITs

SINGAPORE (Nov 15): Donald Trump's presidency will affect the Singapore property market in three ways, says JP Morgan in a recent report. 

According to lead analyst, Brandon Lee, these are likely to benefit Singapore's property developers, but will work against the favour of the city state's REITs. 

Steeper yield curve for S-REITs
A higher US fiscal deficit would steepen the US yield curve. This would lead to a steeper Singapore yield curve as well, notes Lee, given their 87% positive co-relation. One such example would be the 83% negative co-relation with the steepness of yield curve displayed by Singapore REITs in 2016, compared to just 51% in 2015, says the analyst.

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