Improved business sentiments push Singapore office rents up | 21 March 2014
The global economy continues to heal and office rents in Singapore have benefited as a result.
According to channelnewsasia.com, new figures from property consultants Colliers International reveal that office rents in Singapore’s central business district (CBD) increased by 3.2 per cent during the first quarter of this year, in comparison to the fourth quarter of 2013.
Colliers International believes that improved global business sentiments have helped push office rents up, particularly as the US and Eurozone economies have recovered much faster than expected. These recoveries have increased the demand for office leasing, which in turn have pushed rental prices up.
It’s Singapore’s premium and Grade A offices which have seen the biggest rises, as the average monthly gross rent in the CBD has rocketed to S$8.99 per square foot.
The report also shows that office vacancies are down and many companies are deciding to review their options regarding relocation and expansion, so that their rents don’t rise even more. In the fourth quarter of 2013, the average occupancy rate for top-grade offices stood at 93.9 per cent. Now, the occupancy rate has climbed to 95.9 per cent.
Some office building are doing particularly well; head of leasing at the Asia Square Tower 2, Luke Moffat, says more than 200,000 square feet of office space has been committed in the last six months, reports businesstimes.com.sg.
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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