Tag Archives: 313 @ Somerset

But competition for limited availability drives up Q3 prime suburban rents 0.7%

PRIME Orchard Road rents fell 3 per cent quarter-on-quarter to $32.90 per square foot per month (psf pm) in Q3 2009, a new report from CB Richard Ellis (CBRE) shows.

This is in line with the 2.9 per cent quarter-on-quarter fall in prime Orchard Road rents seen in Q2.

However, in a reversal of the rental trend, prime suburban rents inched up 0.7 per cent quarter-on-quarter to average $28.50 psf pm in Q3 2009, driven by competition for limited availability. In view of this, CBRE now expects prime suburban rents to contract by 1-2 per cent this year, compared with its earlier estimate of a 2-3 per cent contraction.

By contrast, CBRE is maintaining its forecast for a 10-12 per cent decline in prime Orchard Road rents for the whole of this year. Including a further decline of not more than 5 per cent expected for next year, the eventual rental trough for prime Orchard Road retail space should not be less than the $30 psf pm-level, the firm said.

‘The last time Prime Orchard Road rents fell below $30 psf pm was from 1998 to mid-2000, when the effects of the Asian Financial Crisis were most felt,’ noted the property firm in its report. ‘Since the turn of the millennium, prime Orchard Road rents have shown a certain resilience. Even during the global electronics downturn and Sars in 2002/2003, these rents did not dip below $31.50 psf pm.’ Continue reading →

Property consultancy CB Richard Ellis said on Monday that prime Orchard Road rents averaged S$32.90 per square foot in the third quarter, down three per cent from the second quarter.

For the full year, CBRE said it expects Orchard Road rents to fall between 10 and 12 per cent, and a further decline is not expected to exceed five per cent next year.

This means the eventual rental trough should not be less than the S$30 per square foot per month level.

The last time prime Orchard Road rents fell below S$30 per square foot per month was from 1998 to mid-2000, when the effects of the Asian Financial Crisis were most felt.

However, CBRE said leasing activities for new Orchard Road space have stabilised and pre-commitment tenancies remain strong.

Mandarin Gallery is almost 100 per cent occupied ahead of its pre-Christmas opening.

Knightsbridge announced that it is 50 per cent pre-committed and expects the remaining leases to be finalised by the third quarter of this year.

Triple One Somerset is 60 per cent pre-let while across the street, 313@Somerset announced that it is 90 per cent leased ahead of its late-November opening.

Source : Channel NewsAsia – 14 Sep 2009