Prime office rents in Singapore up 1.2%

According to a quarterly report by Savills Singapore, business confidence and hiring expectations of nonfinancial firms in Singapore remain optimistic, driving up rents in Grade-A offices in the CBD by 1.2% q-o-q as at end-1Q2013. A healthy take-up of 489,000 sq ft by private equity, oil and gas and trading companies, coupled with no new supply in the quarter, resulted in vacancy rates falling to 5.9%.

The strongest demand was in Marina Bay, with average rents of prime offices there rising 2.9% q-oq. Capital values for Grade-A offices reached $2,667 psf, growing for a second consecutive quarter despite moderate investment activity in the office sector. Demand is set to be driven by industries such as oil and gas, chemicals and IT as the financial sector deleverages, says Savills. —

Source : TheEdge – 29 Apr 2013

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