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Rent of Grade A office space in Singapore rose 4.1 percent quarter-on-quarter and 12.8 percent year-on-year to S$10 psf per month, while vacancy remained tight a 6.0 percent, according to CBRE’s Asia Pacific Q2 MarketView.
The annual rental growth represents the fourth highest in the Asia Pacific (APAC) region followed by Sydney CBD (13.2 percent), Melbourne CBD (13.9 percent) and Ho Chi Minh City with 17 percent.
According to latest data from the Urban Redevelopment Authority (URA), office rents across Singapore increased by 9.45 percent year-on-year in Q2 2018, exceeding the 6.55 percent annual gain in Q1 2018.
However, some potential office tenants may be tempted to reject the city-state due to its rapidly rising rents, the property consultancy told the Singapore Business Review.
Nevertheless, CBRE’s research head for Asia Pacific Henry Chin revealed that net office absorption in Singapore remained strong, carried by solid pre-commitments at the newly completed Frasers Tower, which added around 663,000 sq ft of space to the market.
Aside from that, the property consultancy highlighted that Singapore was one of the region’s most active office markets aside from India, Japan, China and Hong Kong in Q2 2018 that helped boosted APAC’s office absorption by 22 percent quarter-on-quarter to 16.8 million sq ft.
Eugenia Rosaline Shlaen edited this story. To contact her about this or other stories, email eugenia@propertyguru.com.sg
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