Tag Archives: Office Space

Analysts say office rental slide a necessary correction

Posted on 19 Oct 2009 | Comments Off on Analysts say office rental slide a necessary correction

Prime office rents may be on a downward trend, but analysts say there is nothing much to worry about as the decline is a necessary correction.

An oversupply of office space and low demand has knocked down prime office rentals in the central business district (CBD).

Rents have fallen as much as 40 per cent since the beginning of 2008 but observers said that rents are not in a free fall. They said the slowdown in rental rates is a correction that was going to happen due to the unusually high prices resulting from the boom in 2007.

“We could see office rentals return to a 2005 level. Office rentals have risen to such a high rate, so we must not take it that the 2007 rates are the norm,” said Nicholas Mak, Independent Property Consultant. Continue reading →

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DTZ expects office rentals to return to positive growth in 2010

Posted on 15 Oct 2009 | Comments Off on DTZ expects office rentals to return to positive growth in 2010

Property consultancy DTZ has upgraded its outlook for the office property sector.

It now expects office rentals to return to positive growth next year as the improving economic outlook feeds through.

But it said the outlook for 2009 remains firmly negative.

Year to date, office rentals throughout Asia Pacific have fallen by an average of over 10 per cent.

DTZ said the latest quarter on quarter growth was down around 2.5 per cent.

It expects the end of this year to be the bottom of the market as most cities are expecting to see yields stabilise in 2010.

The property consultancy said it doesn’t expect to see significant growth in Singapore’s office sector until 2011.

But it said growth may occur earlier if the positive sentiment amongst domestic and multinational occupiers persists.

Source : Channel NewsAsia – 15 Oct 2009

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