Julius Baer has released its Singapore Real Estate Investment Trust (S-REIT) outlook for 2025, highlighting a cautiously optimistic view amidst a volatile macroeconomic environment. The report, authored by Equity Research Analyst Jen-Ai Chua, comes on the heels of Singapore’s 2025 budget announcement, which includes measures to bolster the competitiveness of the capital markets and enhance the attractiveness of S-REITs through tax transparency and foreign income concessions.
The S-REIT Index has seen a 20-year journey, producing total returns of 221.8%, with dividends contributing 95% of these returns. However, capital gains have remained flat, with the index closing at 630.79 points on 13 February 2025, nearly the same as its 2005 level. The report attributes this stagnation to a normalised interest rate environment and increased foreign asset exposure, which has diluted the asset class’s traditional defensiveness.
Despite a 12% decline in S-REITs last year, Julius Baer suggests that the odds of a further price drop in 2025 are low. This outlook is supported by the Monetary Authority of Singapore’s recent easing of monetary policy, which is expected to benefit yield plays. However, the report advises a selective investment approach, favouring S-REITs with a strong domestic focus or those aligned with structural growth themes.
Whilst the macro environment remains unpredictable, the report underscores the resilience of Singapore’s capital values and the stability of the Singapore dollar as key factors supporting a more positive outlook for S-REITs in the coming year.
This news story was carefully selected and published by a human editor, though the content itself was AI-generated. If you spot an error, please report it here.
