Singapore office rents expected to rise up to 15%

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Meeting roomOffice rents in Singapore are seen to rise 10 to 15 per  cent in 2014, according to property firm Colliers International. With most economic and market indicators pointing upwards, the near-term outlook of the office leasing market is bright and could possibly support rental price growth.

Supply-wise, new office space supply is expected to stay at a high of about 2.2 million square feet in 2014, Colliers said in a release. Of these. 1.2 million square feet will be available in the Central Business District (CBD), such as CapitaGreen and South Beach, which are scheduled to complete in the fourth quarter of 2014.

The balance will be largely from projects that are either strata-titled (Paya Lebar Square and PS100) or located outside the CBD (Westgate), which have minimal impact on rents in the CBD. The stock of sublease space in the market has jumped to about 230,000 square feet as of December 2013 from 140,000 square feet three months ago.

The spike in sublease space is unlikely to be a major concern for the office leasing market as it arose largely as the result of the rationalisation of space from a mired of industries rather than the scaling down or cessation of businesses characteristic of a bear market. Moreover, the improvement in business sentiments should ensure a steady absorption rate, Colliers said.

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Reading Time: 1 minute

Office rents in Singapore are seen to rise 10 to 15 per  cent in 2014, according to property firm Colliers International. With most economic and market indicators pointing upwards, the near-term outlook of the office leasing market is bright and could possibly support rental price growth.

Reading Time: 1 minute

Meeting roomOffice rents in Singapore are seen to rise 10 to 15 per  cent in 2014, according to property firm Colliers International. With most economic and market indicators pointing upwards, the near-term outlook of the office leasing market is bright and could possibly support rental price growth.

Supply-wise, new office space supply is expected to stay at a high of about 2.2 million square feet in 2014, Colliers said in a release. Of these. 1.2 million square feet will be available in the Central Business District (CBD), such as CapitaGreen and South Beach, which are scheduled to complete in the fourth quarter of 2014.

The balance will be largely from projects that are either strata-titled (Paya Lebar Square and PS100) or located outside the CBD (Westgate), which have minimal impact on rents in the CBD. The stock of sublease space in the market has jumped to about 230,000 square feet as of December 2013 from 140,000 square feet three months ago.

The spike in sublease space is unlikely to be a major concern for the office leasing market as it arose largely as the result of the rationalisation of space from a mired of industries rather than the scaling down or cessation of businesses characteristic of a bear market. Moreover, the improvement in business sentiments should ensure a steady absorption rate, Colliers said.

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