Shares of commercial developers and real estate investment trusts have fallen since authorities announced last month that working from home will remain the default arrangement.
SINGAPORE: Singapore’s battered property firms are hitting a snag in their recovery after rising coronavirus infections led to an extension of remote work in the city-state.
Shares of commercial developers and real estate investment trusts have fallen since authorities announced last month that working from home will remain the default arrangement.
The government is trying to minimise the risk of transmission at offices after some cases in the workplace led to community clusters.
The move adds to headwinds for developers and REITs, amid questions over what the future holds for offices worldwide even after the pandemic.
(Feb 3): Singapore’s battered property firms are hitting a snag in their recovery after rising coronavirus infections led to an extension of remote work in the city-state.
Shares of commercial developers and real estate investment trusts have fallen since authorities announced last month that working from home will remain the default arrangement. The government is trying to minimize the risk of transmission at offices after some cases in the workplace led to community clusters.
The move adds to headwinds for developers and REITs, amid questions over what the future holds for offices worldwide even after the pandemic. It will be harder to lease out vacancies and there will be pressure to lower rents if the work-from-home arrangement persists, said Terence Chua, an analyst at Phillip Securities Research Pte.
Singapore may act to stall rising home prices thestar.com.my - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thestar.com.my Daily Mail and Mail on Sunday newspapers.
Three years ago, it was touted as a development that would rejuvenate Singapore’s central business district. But an upcoming building in the city-state could have fallen victim to the pandemic, which has upended the office market as work from home remains a long-term arrangement for some companies.
SINGAPORE (Jan 19): Three years ago, it was touted as a development that would rejuvenate Singapore’s central business district. But an upcoming building in the city-state could have fallen victim to the pandemic, which has upended the office market as work from home remains a long-term arrangement for some companies. CapitaSpring, a 51-floor integrated development with JPMorgan Chase & Co as an anchor tenant, has only managed to secure about 38% out of 647,000 square feet (62,600 square meters) of net lettable area. That’s low considering it’s 75% completed. Typically at that stage in pre-pandemic times, buildings would have leased out more than half of their space, three analysts said.