Grade A office rents in Singapore rose 5.5 per cent in Q1 | 10 April 2014
In Singapore grade A office rents are now 5.5 per cent higher than they were in the previous quarter.
According to straitstimes.com, new figures from Cushman & Wakefield show that rent is now $9.90 per square foot (psf) per month on average. Grade A rents have increased for the last four quarters, due a lack of supply and a rising demand. Over the course of a year, rents have rocketed by 10.1 per cent.
Raffles Place saw the biggest rent increases, as they rose by around ten per cent compared to the previous quarter. Marina Bay buildings are the most expensive to rent though, as rents were boosted by 9.3 per cent to $12.90 psf. Businesses wanting to lease the newest building in Marina Bay can expect to pay even more. Monthly rent costs anywhere between $13 – $14 psf, reports asiaone.com.
Mr Toby Dodd, Cushman & Wakefield’s Singapore head, comments on the future of rental costs.
“We expect prime office rents in the central business district (CBD) area to continue to rise over the next few quarters, supported by a moderate level of new supply this year and positive economic sentiments as the outlook of the global economy improves,” he states.
Vacancy rates currently sit at just four per cent and only declined by 0.2 per cent over the first quarter of this year.
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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