Prime office rents in Singapore post biggest rise in four years | 07 January 2015
Singapore’s prime office rents for 2014 may have reached their most significant growth in at least four years, according to the Urban Redevelopment Authority (URA).
In the first nine months of 2014, the rental index for prime office space grew by 8.7 per cent, almost the largest increase seen since 2010, when it climbed upwards by 12 per cent, reports todayonline.com. Over the past two years, prime office supply has been unable to keep up with demand, which means 2014’s rental growth might have be as high as 14 per cent, Savills claims.
Alan Cheong, a Singapore-based director at Savills, said landlords will be able to command higher rents due to the lack of space that will be available both this year and next.
“Going into 2015, demand would almost match supply for prime office space, making the office market fundamentally sound,” he stated.
However, some landlords are trying to convince tenants to sign up to longer leases than usual, as they fear the market will soon soften due to the large amount of office space being built in two years’ time, reports businessweek.com.
In 2015, the property market will receive 1.15 million square feet of new office space, director of Knight Frank LLP Alice Tan has estimated. This is a small decline from the previous year’s figures, as 1.87 million square feet of office space was added to the market in 2014.
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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