Singapore office REITs fell 12.55% in the first half of 2026 and trade at deep discounts, while core CBD Grade A vacancy holds at 3.3%. Morningstar backs Keppel REIT and CapitaLand Ascendas REIT. After a robust performance in 2024 and 2025, there are signs that a combination of geopolitical volatility and a heightened interest rate environment is putting pressure on the Asia Pacific real estate investment trust (REIT) market. The US war with Iran that started in February this year exacerbated concerns about persistently high global price inflation, while a more hawkish US Federal Reserve has weighed on sector performance, according to the Morningstar report. A report by investment research firm Morningstar Asia indicates that most of the mature REIT markets in Asia, including Singapore, remain under pressure amid concerns over higher interest rates in the coming months. Singapore REITs are facing pressure as the 10-year bond yield climbs higher. In general, REIT performance moves in the opposite direction to...