SINGAPORE (Dec 3): According to the Monetary Authority of Singapore’s asset management survey 2017, Singapore attracted $2.3 trillion in assets under management (AUM) last year. Of this, 78% was sourced from outside the country and only 17% was invested in Singapore. Can the city state also be turned into a hub for real estate investment? The inaugural Mapletree real estate annual lecture and panel discussion held at the Singapore Management University (SMU) on Nov 26 titled “How to grow Singapore into a premier financial centre for real estate investment” attempted to answer this question.

Prof Francis Koh, Mapletree Professor of Real Estate and Professor of Finance at SMU Lee Kong Chian School of Business, pointed out in his lecture that Singapore real estate investment trusts had outperformed equities and bonds since 2002, and outperformed developers and actively managed real estate mutual funds since 2010. S-REITs are now the sixth-largest REIT market globally, and the third-largest in Asia after Japan and Australia. In addition to growth, S-REITs give investors the highest yields in Asia-Pacific.

To attract more REITs to list in Singapore, Koh says: “We will need to maintain the current tax pass-through of income received by S-REITs and waiver of stamp duty charges in the purchase of properties by S-REITs.” In addition, he feels that there should be clearer statements to provide certainty that these concessions are permanently available, or will be for the next 20 years, rather than be up for approval every five years.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook