Fresh supply coming to the market outstrips rejuvenated demand
‘Demand will be reasonably strong next year, but vacancy rates will continue to rise through 2010 on the weight of new supply completion.’- Moray Armstrong, CB Richard Ellis
THE office market posted a positive take-up of 3,000 square metres (or 32,292 square feet) in the third quarter of this year – reversing three consecutive quarters of negative take-up, according to latest figures released by Urban Redevelopment Authority (URA).
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| SPANKING NEW Among the projects that were completed in the July to September period this year were Mapletree Anson, 71 Robinson Road and transitional office developments at Scotts Road and Anthony Road |
Office take-up shrank 247,570 square feet in Q2 this year, 322,917 sq ft in Q1 2009 and 365,973 sq ft in Q4 last year.
Despite Q3’s positive take-up figure, vacancy rates continued to rise and rents slipped further in the third quarter as the supply of new office space completed doubled to 1.25 million sq ft in Q3 this year from 552,188 sq ft in the preceding quarter.
Among the projects that were completed in the July to September period this year were Mapletree Anson, 71 Robinson Road and transitional office developments at Scotts Road and Anthony Road.
The islandwide vacancy rate for office space rose from 10.8 per cent as at end-June 2009 to 12.2 per cent as at end-September.
The vacancy rate for URA’s Category 1 space – which covers major office buildings in the Downtown Core and Orchard Planning Area that are modern or recently spruced up, and have big floor plates – increased from 6 per cent as at end-June to 6.5 per cent as at end-September.
The vacancy rate for Category 2 space – which refers to the remaining office space on the island – climbed from 11.9 per cent to 13.4 per cent over the same period, reflecting the flight to quality among occupiers that property consultants have been talking about. Continue reading
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