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This comes on the back of declining demand for coworking space, a shift to non-CBD location as well as the influx of family office.
Jefferies Financial Group expects office spot rents in Singapore to plateau this 2020, reported Singapore Business Review.
This comes on the back of declining demand for coworking space, a shift to non-CBD location as well as the influx of family offices.
In a report, Jefferies noted that while office rents increased 1% year-on-year in the third quarter of 2019 due to coworking and tech demand, growth remains in the diminishing trend when compared to the 5.4% average increase registered during the previous quarters of 2019.
The report also expects rents for the retail sector to decline this year. Vacancy rate within the sector have been on the downtrend – falling from 9.5% in Q1 2019 to 9.1% in Q3 2019. Jefferies expects to see a spill over to 2020.
Meanwhile, Singapore’s hotel sector fared better, with hotel RevPAR expanding 21% year-on-year in November 2019 as supply tapered and leisure demand increased thanks to the MICE segment.
Looking ahead, Jefferies expect the hike in RevPAR to continue to 2020.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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