For some time now, I have been saying it is better to be vested in industrial S-REITs rather than office S-REITs. My research supports this idea.
Now, with the government imposing more cooling measures on residential properties, many investors turned their attention to industrial and commercial properties instead. This has hastened the rising prices of such properties.
Indeed, when a relative of mine called to enquire about Low Keng Huat's Paya Lebar Square, she was told that a modest office unit would set her back by $2,000 psf and the project was almost sold out!
Is it a good idea to pay top dollar to invest in commercial properties in Singapore now?
Over 2H11, we saw office rents peak as Grade A rents declined 0.5% QoQ in 4Q11 while Grade B rents fell by 0.4%. We expect further rental dips in FY12 and believe, from our channel checks, that Grade A ......