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Office rents up 2.8% in Q2

PropertyGuru

Office rents in Singapore climbed by 2.8 percent in Q2 2014 compared to a 2.4 percent rise in the previous quarter, revealed the latest figures from the Urban Redevelopment Authority (URA).

According to property consultancy JLL, the increase is attributed to "steady demand, driven mainly by smaller space occupiers."

On the other hand, prices of office space were flat compared to a 0.5 percent increase in Q1 2014.

"The prices of offices remained stable in Q2 2014, supported by the launch of Vision Exchange which accounted for 42 percent of the office transactions during the quarter, with prices ranging from $1,907 to $2,341 per sq ft," said JLL.

In terms of stock and vacancy, office space absorption increased by 22,000 sq m in Q2 2014 versus the 6,000 sq m hike in the previous quarter. Conversely, the supply of office space declined by 1,000 sq m, compared to the additional 15,000 sq m of space in Q1 2014.

Consequently, vacancy rate across Singapore fell to 9.6 percent in the second quarter from 10 percent previously. But based on the property consultancy's data, the vacancy rate within the central business district was even lower at 5.8 percent

It is noted that a gross floor area (GFA) of 1.055 million sq m was in the pipeline at the end of June.

Meanwhile, retail rents rose by 0.6 percent in Q2 2014, an improvement from the 0.3 percent dip in the previous quarter. But prices of retail space slid by 0.3 percent after it remained unchanged in Q1 2014.

In terms of stock and vacancy, retail space absorption climbed by 38,000 sq m in the second quarter, while the stock of retail space rose by 49,000 sq m. As such, island-wide vacancy rate inched up to 5.9 percent from 5.8 percent previously.

Furthermore, a GFA of 879,000 sq m was in the pipeline at the end of Q2 2014.



Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this and other stories, email nikki@propertyguru.com.sg



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