Commercial rents recovering in Singapore | 28 June 2013
Singapore’s commercial rental rates are beginning to recover from the slump seen in the last quarter of 2012.
That’s according to the latest real estate report from Cushman & Wakefield, which revealed that rental rates for office space within Grade A locations grew by 4.2 per cent in the second quarter of 2013. The average rate now stands at S$9.03 a square foot per month.
Vacancy rates for Grade A office space are on the rise as well. The improvements have been partly attributed to the increasing variety of tenants. CBRE Research’s Desmond Sim told channelnewsasia.com that take-up isn’t limited to financial institutions any more.
He said: “You have complimentary services like insurance, you’ve got legal all coming in to take up Grade A stock within Marina Bay and Raffles Place.”
Elysia Tse, strategy vice president for Aviva Investors Asia Pte., agreed with Sim’s view – telling businessmirror.com.ph that the market has become a lot more “diversified”.
Sim also explained how the fact that demand is outweighing supply is pushing rates upwards, so companies need to take action now to secure a reasonable rate. In fact, in 2015, no new Grade A commercial space is set to be created – so supply is set to dry up even further. Over this year and next, though, the Asia Square Tower II will be erected, as will CapitaGreen.
Cushman & Wakefield’s managing director of research for Asia Pacific, Sigrid Zialcita, added that take-up on commercial space has been “brisk”. Zialcita concluded: “Going forward, we see very healthy leasing occurring in this [sic] properties.”
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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Staff from Qube Global Software will attend MIPIM Asia, the two day global leader summit, at the beginning of December 2015. Topics this year include Asia Pacific inbound and outbound investment flows, regional development opportunities and projects, and real estate trends.
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