Singapore-listed office REIT, Keppel REIT (SGX:K71U), fell by more than 2% on 2 September in line with a third straight day of decline in the benchmark Straits Times Index and news that Singapore economic growth projections have been slashed for the year.

Private economists polled by the Monetary Authority of Singapore in a quarterly survey now expect the country’s economy to grow by 2.2%, down significantly from the 2.7% forecast earlier in the year.

Expectations of more moderate growth in Singapore have generally tended to cast shadows on the short to medium term demand for office space in the country given its reliance on the banking and financial services sector.

Units of Keppel REIT closed the trading day at SGD0.945. The REIT with a portfolio of primarily Singapore office properties has declined by 24.4% since exactly a year ago. The REIT’s 52-year low currently stands at SGD0.90.

Expectations of rising interest rates are likely to exert further downward pressure on the counter in the near term.