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Prices of office and retail spaces in Singapore recorded slight moderation in Q3, the latest Urban Redevelopment Authority’s latest real estate statistics revealed Friday (23 October).
Office space prices fell 0.1 percent in Q3, following a 0.3 percent increase in the previous quarter. Meanwhile, office rents dipped further, dropping 2.9 percent after a 2.6 percent decline in Q2.
At the end of the third quarter, a total supply of about 908,000 sq m GFA of office space was in the pipeline. According to URA, the amount of occupied office space increased by 15,000 sq m (nett) in 3rd Quarter 2015, compared to the 38,000 sq m (nett) increase in the previous quarter. “As a result, the island-wide vacancy rate of office space at the end of 3rd Quarter 2015 fell to 9.6 percent, from 9.8 percent at the end of the second quarter.”
Source: URA
Over at the retail front, prices also registered a slight dip, dropping 0.3 percent in the last three months, easing further after a 0.5 percent decline in the previous quarter. Rental prices also decreased, posting a 2.0 percent decline the period under review, following a 0.5 percent drop in Q2.
As at the end of Q3, there was a total supply of 786,000 sq m GFA of retail space from projects in the pipeline, URA said.
Source: URA
URA data also revealed that the amount of occupied retail space decreased by 13,000 sq m (nett) in Q3, after remaining unchanged in the previous quarter. The stock of retail space also decreased by 24,000 sq m (nett) in the last three months, compared to the 25,000 sq m (nett) increase in the previously. As a result, the island-wide vacancy rate of retail space fell to 7.0 percent at the end of third quarter, from 7.2 percent at the end of Q2.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg