An estimated record 1.19 million square feet of new office space was added in the third quarter of this year, according to the latest Singapore Property Market Report by consultant DTZ.
This increased the overall office stock by two per cent. The new supply in the third quarter was more than last year’s total new supply of 1.14 million square feet.
Newly completed offices included Mapletree Anson, 2HR, 71 Robinson Road and two transitional offices at Scotts Road.
The new supply resulted in an islandwide average office occupancy easing by 1.3 percentage points to 91.5 per cent in the third quarter.
The fall in office rents has also moderated in the quarter. Average monthly gross rents of prime offices in Raffles Place fell by 12.4 per cent to S$8.50 per square foot per month in the third quarter. This was a smaller decline than the 19.2 per cent drop recorded in the second quarter.
Private industrial rents also saw their rate of decline easing. Rent for first-storey private conventional industrial space fell just 2.4 per cent to S$2 per square foot per month in contrast to the 6.8 per cent decline in Q2.
Rents in other industrial spaces, including business and science parks, continued to fall but moderated from the previous quarter.
Source : Channel NewsAsia – 30 Sep 2009