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Prime Orchard road rent continue to fall but post healthy pre-commitment levels

Posted on 14 Sep 2009 | Comments Off

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

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Posted in Luxury Property, Office / Retail / Industrial

Tagged 313 @ Somerset, Mandarin Gallery, Orchard Road, Retail Space, Singapore Office / Retail, Triple One Somerset

Office market tested with Merchant Square sale

Posted on 1 Sep 2009 | Comments Off

MERCHANT Square, a four-storey office building off Merchant Road, is up for sale again – this time at a deep discount to its last asking price.

The leasehold property was on the market in February last year at the guide price of $73 million but the offers then ‘did not meet the owner’s expectations’, said CB Richard Ellis (CBRE), who is marketing the property.

This time, the seller – Jackson International – is testing the market with a significantly revised guide price of $48 million, said the firm.

CBRE’s director of investment properties, Mr Charles Hoon, said yesterday the difference in the guide price was mainly due to the high valuations and asking prices at the peak of the previous property boom in February last year.

With the new guide price and a total net lettable area of 50,262 sq ft, the sale price works out to about $955 psf.

The office building, which comprises a four-storey office tower and two blocks of shophouses, sits on a land area of about 27,668 sq ft and has two levels of basement carpark comprising 76 lots. The property was completed in 1996. Continue reading →