Downside of prices for Singapore REITs are limited in near term, given the continued demand of investors for higher yield amid low interest rates, said Morgan Stanley.
The global financial services firm adds that increasing asset values particularly the office property market, and the stronger Singapore dollar against the US dollar will help underpin SGD-denominated assets.
Still, REITs could find it challenging to follow yield-accretive acquisitions as competition for assets heats up, and capital values continue rising.