Healthcare real estate investment trusts (S-REITs) have emerged as the top-performing subsector in the Singapore REIT market for the year to date, achieving an average total return of 2.8% as of 20 February 2025. This follows impressive returns of 6.9% in 2024 and 7.1% in 2023, according to the latest data from the Singapore Exchange (SGX).
Retail investors have shown significant interest in S-REITs, with net purchases totalling S$608m between December 2024 and February 2025. This trend underscores the growing confidence in the sector, particularly in healthcare, which continues to attract investor attention.
Data centre S-REITs are also experiencing growth, driven by the increasing adoption of artificial intelligence technologies. Property consultancy JLL highlights data centre assets as likely beneficiaries of this technological shift, suggesting a promising outlook for investors in this area.
Meanwhile, S-REITs with retail assets in Singapore have maintained high occupancy rates and positive rental reversions, buoyed by a recovery in tourism and proactive asset management. Market expectations indicate that committed occupancy in the retail segment will remain robust, with continued rental growth anticipated throughout 2025.
Office S-REITs in Singapore have reported stronger operational performance, with leasing activities in quality office developments improving in the fourth quarter of 2024. JLL data suggests that rental and capital values are expected to remain stable in the first half of 2025, with potential recovery in the latter half of the year.
Overall, the diverse performance across different S-REIT sectors highlights the dynamic nature of the market and the varied opportunities available to investors. As the year progresses, these trends will likely continue to shape investment strategies and market outcomes.
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