Expert predicts rent declines in Singapore | 19 November 2014
The slowing demand for premium office space in Singapore may well begin to impact rents in the country next year, one industry figure has claimed.
According to Warren Bishop, the head of Raffles Quay Asset Management (RQAM), competition for tenants is intensifying thanks to a surge in the number of projects currently ongoing.
Figures from property firm Jones Lang LaSalle show that nearly four million square feet of office space will be created in 2016 alone. This is despite the fact that demand has stood at approximately 1.5 million square feet per year since 2004.
These forecasts comes as demand starts to fall, with interest from the financial sector – traditionally one of the market’s biggest influencers – showing the most notable decline.
Mr Bishop went on to suggest that the impact might take a little while to show. He was quoted by todayonline.com as saying: “When most tenants consider renewing their leases, they look 12 months ahead. Given that the bigger chunk of space will not come online until 2016/2017, that won’t affect the market until towards the end of next year, when a downward trend will begin.”
The comments come after Cushman & Wakefield highlighted growing interest in Singapore from developers in China. The property firm’s data puts Singapore in second place behind Hong Kong in a list of the most popular overseas investment destinations, malaysiandigest.com reports.
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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