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This comes as the office sector will likely remain stable mainly due to limited new office supply until 2022.
Edmund Tie & Company expects rental rates in the central business district (CBD) to increase between five percent and nine percent this year, reported Singapore Business Review.
This comes as the office sector will likely remain stable mainly due to limited new office supply until 2022.
In Q1 2019, average gross monthly rents within the CBD grew by 1.5 percent to 3.5 percent quarter-on-quarter, while island-wide occupancy rate climbed to 93.5 percent from 92.4 percent in the previous quarter.
The occupancy rate in the CBD rose the most to 94.8 percent. The city fringe area, on the other hand, saw occupancy rate marginally drop by 0.4 percentage points, partly due to growing vacancies of older office buildings and strata-owned buildings.
Meanwhile, office transactions valued above $30 million moderated in Q1 2019, with only three transactions recorded comprising strata offices with a combined value of $247 million.
Fiona Ho, Digital Content Manager at PropertyGuru, edited this story. To contact her about this or other stories, email fiona@propertyguru.com.sg
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