THE total value of acquisitions made by real estate investment trusts (REITs) reached RM4.67 billion in 2022, surpassing the RM3.82 billion and RM1.97 billion recorded in 2021 and 2020 respectively. The increase was in line with the overall improvement in the property market as the country began its transition to the endemic phase of Covid-19, say property experts.
Based on enquiries received, consultation provided and industry news, market experts believe the total value of acquisitions made by REITs in 2023 could top the 2022 figure.
Siva Shanker, CEO of real estate agency at Rahim & Co International Sdn Bhd, expects 2023 to be better for the REIT sector in terms of transaction volume and value as the economy has stabilised, given that the Covid-19 pandemic is over and corporate results in 3Q2022 showed an improvement.
“These positive sentiments are expected to carry through into 2023. Moreover, the political situation is stable,” Siva tells The Edge.
Laurelcap Sdn Bhd executive director Stanley Toh concurs, noting that the total acquisition value this year could surpass that of 2022. Toh warns of downside risk, however, flagging more interest rate hikes in 2023.
