Smaller REITs hardest hit by stamp duty concession expiry

Acquisition costs will increase.

The end of stamp duty concession for local property acquisitions will push smaller REITs to explore buying properties abroad, Moody’s said in a report today.

The report stated that stamp duty is negative for S-REITs with a mandate to invest primarily in Singapore because it increases their acquisition costs for Singapore properties.

"We expect these greater acquisition costs for local properties will push S-REITs—especially those with smaller balance sheets—to consider opportunities in overseas markets," adds Poh.
 

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