Industrial and office property markets stabilising: DTZ Research

Singapore’s industrial and office property markets are showing signs of improvement.

Property consultancy DTZ Research on Wednesday said that islandwide office occupancy improved in the first quarter of this year.

The average islandwide office occupancy rate rose 0.7 percentage-point on-quarter to 92.4 per cent.

DTZ said the improvement in occupancy rate was due to an increase in demand.

There was also no new completion of office space in the first three months of this year.

However, office rents will bottom out only sometime next year, or by the end of the year.

This depends on whether the economy grows stronger than expected.

Separately, consultant CBRE said the booming residential market has driven many existing commercial building owners towards redevelopment.

CBRE estimates that about 1.2 million square feet of offices will be converted to mainly residential use up to 2013.

With the economy on a growth path, DTZ expects the industrial rental market to bottom out this year.

But they caution that the recovery will be at a slow pace, due to new supply coming on stream.

Source : Channel NewsAsia – 1 Apr 2010

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