But still "competitive" at S$8.61 psf.
According to Cushman & Wakefield's Office Space Across the World 2013 report, office rents in Singapore CBD are 51.68% lower than Hong Kong. Singapore rents decrease 16% year on year bottoming out in 2013 with rents unlikely to fall further, increases forecast late 2013 or early 2014.
Encouragingly Singapore rents are increasingly competitive for the region with rates at S$8.61 psf compared to Hong Kong which is the most expensive rents in the region at HK$104.47 psf (S$16.66 psf). Singapore government adopts plan to decentralize business activities to other commercial areas outside the CBD helping keep CBD rents competitive
Sigrid Zialcita, Managing Director for Cushman & Wakefield’s Research team in Asia Pacific stated:
“Singapore’s rent ranking globally and regionally slipped in 2012, which is emblematic of conditions in other financial centers in the region. The combination of below-trend leasing activity and relatively elevated vacancies in super-Grade A space have kept rents on a downtrend over the past year, and among the lowest compared to other financial centers including Hong Kong, Tokyo, Sydney and Shanghai.
But we see more underlying strength in leasing activity this year on account of overall steady economic progress. For occupiers, this presents an opportunity to upgrade relocate, renew or expand at favorable lease terms.
The continued prominence of other emerging markets such as Beijing and New Delhi among the most expensive global markets also attests to their rising clout in the global arena.”
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