More volatility may be in store for valuations of retail, office and hospitality properties, while data centres and logistics assets will likely see their values improve in tandem with the growing need for digital solutions and supply-chain resilience. That is according to the Institute of Real Estate and Urban Studies (IREUS) at the National University of Singapore. It analysed all properties held by Singapore-listed real estate investment trusts (S-Reits), based on their annual reports. IREUS deputy director Lee Nai Jia said: “Valuations will remain fluid as consumers, firms and workers recalibrate their lives in response to pandemic measures. The Delta variant may also trigger new waves of infections in countries that have otherwise brought Covid-19 under control.” For S-Reits with fiscal years ending Mar 31 or Jun 30, valuations of their logistics properties and warehouses across all geographies increased by 3.4 per cent from end-FY20 to end-FY21, although the pace of growth for data centres slowed to 0.9 per cent. Retail and office assets, meanwhile, posted declines in values. “This suggests the downtrend is likely to persist for the whole of calendar year 2021,” Dr Lee said.
Singapore REITs
