Singapore property firms face setback as workers stay at home
SINGAPORE (BLOOMBERG) - 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 (Reits) 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. "The new default will cast a pall over occupancies going forward," said Justin Tang, the head of Asian research at United First Partners in Singapore. Mapletree Commercial Trust, which owns Singapore's largest mall VivoCity and a nearby office building in its portfolio, has fallen 3.2 per cent since the Jan 22 announcement. Far East Hospitality Trust has dr...
