High-end residentials are safe haven favorites for 2013: Maybank

See why Singapore's high-end property will be the investment darlings next year.

Here's more from Maybank Kim Eng:

Selective exposure into Singapore residential sector. We believe that on balance, the high-end residential segment will be the flavor of the year in 2013, particularly when international investors continue to seek safe havens, underpinned by a strong Singapore dollar. Conversely, we expect prices in the mass market segment to correct by 10% by end-2013 amid ample supply and mounting buyer’s fatigue.

Office sector fundamentals remain weak. In light of continued consolidation by Financial Institutions, leasing activity has been restricted mainly to small occupiers seeking spaces typically not exceeding 20,000 sq ft each. We continue to expect a further 10% decline in both Grade A and Grade B office rents by end-2013, as the global economy continues to show signs of softening. In addition, the government has emphasized that it stands ready to ensure an adequate supply of premium office space to strengthen Singapore’s competitiveness as a business hub, which supports our view that office rents are unlikely to grow anytime soon.

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