Singapore office space sees quarterly rental growth of 4.5 per cent | 29 May 2014
Rents for Grade A office space in Singapore rose by 4.5 per cent in the first quarter of this year compared the fourth quarter of 2013 – the biggest increase seen in the Asia Pacific region.
A report from JLL reveals that the office market is starting to strengthen in the region, although expansion levels are staying low. Chris Archibold, head of markets at JLL Singapore, notes that rents will continue to rise over the next 12 months.
“Island wide office vacancy in Singapore is currently relatively low and consequently many of the major developers and investors have portfolios with occupancy rates in excess of 95 per cent,” he says, reports propertywire.com.
“There are three new office buildings coming to the market at the end of this year, two in the central business district (South Beach Tower & CapitaGreen) and one decentralised project (Westgate Tower).”
He adds that these new buildings won’t be complete until 2016, meaning the market needs to wait two years before it sees new office space – which is why rents are expected to rise.
Singapore isn’t the only country in Asia Pacific seeing rent increases though, as in Beijing they’ve gone up by 0.2 per cent. Although this is a small rise, its the first one seen since the third quarter of 2012, reports nationmultimedia.com.
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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