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Property firms face setback as workers stay home

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.

Singapore property firms face setback as workers stay home

(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.

Stock investment ideas: Singapore-listed companies that are rated as a buy

Trading Buy Share price may exceed 15 per cent over the next 3 months; however, longer-term outlook remains uncertain Neutral Share price may fall within the range of +/- 10 per cent over the next 12 months Take Profit Sell Share price may fall by over 10 per cent over the next 12 months Most of the brokers give their rating based on the stock’s expected total return , which considers a company’s share price appreciation plus its dividends. The eagle-eyed ones would have also noticed that the broker ratings are given over a 12-month time frame. If you are an investor, a one-year period is too short in my opinion.

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