Broad recovery was seen in SREITS for the week ending 28 May 2020. Sentiments were mainly boosted by:
- Singapore moving out of its Circuit Breaker period from 2 Jun 2020
- Discussion on “green-channel” travel with countries such as China and others in Asia
- Prospect of business travel commencing soon – giving the airport & airlines businesses recovery hope
Hospitality, retail & industrial REITS rose steadily in view of the above. But while the lifting of circuit breaking measures commence from 2 Jun, work-from-home remains the default protocol. The question remains on everybody’s mind – what will post Covid-19 office demand be like? This will definitely shape the outlook for commercial REITS.
There were also general cautiousness arising from US-China relations and the stance taken by the US towards the Hong Kong situation. But with China announcing an economic-stimulus package, the economic activity in the next few months will certainly be more dynamic. Cautious optimism – that’s how I would describe the situation now.