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Singapore’s prime office rents rose by 0.8 percent during the second quarter of 2014 -the third highest quarterly growth in Asia Pacific (APAC) region, according to Knight Frank’s latest report.
“Singapore continued to benefit from a combination of healthy demand, an increase in the take-up of large office space in and a tight supply pipeline, all of which continue to propel rents upwards. This is despite the continued decentralisation of a number of tenants, led by the public sector,” the report said.
The 0.8 percent rental growth pertains to the Marina Bay and Raffles Place submarkets.
In the region, Phnom Penh saw the highest growth of 3.8 percent followed by Sydney’s 0.9 percent. Completing the top five are Beijing, Guangzhou and Melbourne with growths of 0.4 percent, 0.3 percent and 0.2 percent respectively.
Meanwhile, Hanoi registered the biggest decline of 4.1 percent, trailed by Tokyo (-3.3 percent) and Seoul with -3.0 percent. Completing the bottom five is Perth (-1.3 percent) and Mumbai with -1.2 percent.
“Q2 2014 registered little rent movement, demonstrating less volatility than the previous quarter. 10 markets, out of the 20 markets tracked, this quarter saw less than 0.5 percent rental movement, compared to six markets in the previous quarter,” said Nicholas Holt, Research Head for Asia Pacific at Knight Frank.
“Only three markets – Phnom Penh, Sydney and Singapore – saw more than 0.5 percent rental growth despite significant increase in net absorption and a decline in vacancy rates,” he added.
On a regional perspective, Knight Frank’s Prime Office Rental Index dipped by 0.7 percent during the quarter despite a 0.3 percent drop in vacancy rate.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this and other stories, email nikki@propertyguru.com.sg
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