Some quarters expect another overnight policy rate (OPR) cut soon, which bodes well for the REIT sector. “This is not surprising as investors view REITs as perhaps an indirect substitute to fixed-income instruments,” Hong Leong Investment Bank Research (HLIB) says in an Oct 3 report. The question is, are there more opportunities to be found in the REIT sector? Pong expects the defensive play trend to continue as unfavourable macro data continue to spook investors, raising the attractiveness of REITs. According to HLIB Research, there will be about 18 million sq ft of incoming office supply by 2022, while vacancy rates continue to increase.

Source: The Edge Markets October 14, 2019 06:00 UTC