Dwindling retail property supply to be a boon for REITs

Submitted By:  Nathanielle Punay Case Study:  No A ‘landlord-favourable’ market will persist, whilst occupancy rates could stabilise at 93%. The supply of retail properties is projected to drastically drop to an average of 43,000 sqm per year from 2020 to 2023 from a peak of 250,000 sqm in 2019, according to DBS Group Research. But given the current circumstances, this is expected to be a relief for retail REITs as demand for space has gone down. This is also despite the Singapore Tourism Board’s projections of seeing a 20-30% dip in tourist arrivals in 2020. read more