In its earnings commentary, Singapore Land Group notes that the pandemic situation appears to have stabilised and that the outlook for some sectors have strengthened.
While hybrid working arrangements have become more popular, leasing demand for Grade A offices is seen to continue from the likes of tech companies and family offices.
"At the same time, the flight to quality trend persists with an increasing number of office tenants prioritizing landlords that focus on sustainability and wellness," the company says.
The company is seeing demand for retail space to rise as well, be it Orchard Road or suburban properties.
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"However, the global inflationary pressures, shortages in the labour market and the rise in the cost of energy and raw materials would
continue to place pressure on the pace of recovery," says Singapore Land.
The company is eyeing a pick up in tourist numbers too, which will benefit its hotels.
Last but not least, Singapore Land sees the residential market to remain "supported by sustained demand and limited supply."
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"While developers’ demand for land remain robust amidst the dwindling supply, the rising interest rates, elevated construction costs and increasing land prices remain key concerns," the company adds.
Singapore Land closed Aug 5 at $2.46, up 0.41%. As at June 30, the company's net asset value was $5.52 per share, versus $5.30 as at Dec 2021.
