Singapore office rents expected to continue rising on firmer demand, while concerns over oversupply should abate as new space gets taken up and older properties get converted into residential developments, says Credit Suisse, according to Dow Jones.

Credit Suisse says: "Earlier this year, we had expected older space in the CBD to face some pressure from 'shadow space' (surrender space), or the musical-chair impact from 'flight to quality', as tenants flock to newer office space. But the musical-chair impact has been cushioned by strong demand so far, driven by new business set-ups and expansion of existing offices."

Research house flags CapitaCommercial Trust (C61U.SG) as top pick; upgrades to Outperform from Neutral, lifts target to $1.63 from $1.37. Tips M&As as next catalyst for Singapore office REITs, with CapitaCommercial having most to gain in terms of DPU accretion given its $750 million war chest. Says K-REIT Asia's (K71U.SG) strong balance sheet also equips it to buy more properties; rates at Outperform with $1.45 target.