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Prime office rents in the Raffles Place/Marina Bay area fell 2.0 percent in Q3 amid a challenging external trade environment and strong future supply, Knight Frank’s Asia Pacific Office Index revealed. This is the biggest decline seen in the region.
According to Knight Frank, businesses in Singapore has become more prudent in spending and seek cheaper office spaces outside the city-state’s central business district amid “escalating costs compounded by an appreciating currency in trade-weighted terms.”
Despite this, rents in the Raffles Place/Marina Bay area grew 3.7 percent year-on-year. However, Knight Frank expects a further decline in prime office rents here over the next 12 months.
Overall, Knight Frank’s Asia Pacific Prime Office Rental Index showed 10 out of the 19 markets tracked experienced rental growth including Melbourne, Phnom Penh, Shanghai, Hong Kong, Bengaluru, Mumbai, Tokyo, Seoul and Bangkok while 3 (New Delhi, Jakarta and Taipei) registered no movement.
Going forward, Knight Frank expects rents in these 13 markets to “either increase or remain steady over the next 12 months.”
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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