Demand is slow and steady amid limited supply.
Savills Research & Consultancy reported:
Thanks to slow and steady demand and limited supply in the last quarter, average rents of CBD Grade A offices tracked by Savills are stabilising with a modest quarter-on-quarter decline of 0.9% in Q4/2012.
Among all Grade A offices, prime office buildings (Grade AAA) those in the Marina Bay precinct again showed the highest quarterly drop of 3.4% in Q4 to S$10.0 per sq ft per month, resulting in a 14.9% fall for the whole year of 2012.
On the other hand, other Grade A buildings softened by 3.3% year-on-year on back of healthy occupancy rates.
Consequently, the monthly rents of overall Grade A offices averaged at S$8.31 per sq ft in Q4/2012, falling by about 5.0% from S$8.72 per sq ft a year ago.
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