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05-07-2019, 09:32 AM
Soros thanks for sharing. I would very much want to buy Singapore reits, because there's no currency risk and no need to pay all those custody fees for foreign holdings.
But I'm very worried about the current real estate vacancy rate
From my personal experience, the vacancy rate of grade A office at Tanjong pagar is way higher than reported figure. I guess it's at least 20%. If you walk around the area, you will see many buildings pasting large "For Rent" signs on the walls. Many MNC shifted their back-end operations to cheaper emerging markets. Many industrial buildings in Jurong area are sitting empty as well.
The number of expats are falling as well. If you see the rental situation of landed properties & sentosa cove, you will notice the sharp drop in demand. Coupled with the closure of Joel Robouchen restaurant. I see high end market diminishing. That's why I may think twice before buying S-reit. Please correct me if I make any wrong observations. thank you
But I'm very worried about the current real estate vacancy rate
From my personal experience, the vacancy rate of grade A office at Tanjong pagar is way higher than reported figure. I guess it's at least 20%. If you walk around the area, you will see many buildings pasting large "For Rent" signs on the walls. Many MNC shifted their back-end operations to cheaper emerging markets. Many industrial buildings in Jurong area are sitting empty as well.
The number of expats are falling as well. If you see the rental situation of landed properties & sentosa cove, you will notice the sharp drop in demand. Coupled with the closure of Joel Robouchen restaurant. I see high end market diminishing. That's why I may think twice before buying S-reit. Please correct me if I make any wrong observations. thank you