Singapore office rents are extending their slide as global economic uncertainty forces landlords to drop prices.
Colliers International said the average monthly gross rents for central business district (CBD) Grade A space fell by 1.1 per cent quarter-on-quarter to S$8.45 per square foot in the three months ended June 2012.
This follows a 4.3 per cent on-quarter drop in Q1.
The price decline appears to have boosted demand, with CBD occupancy rates rising to 92.0 per cent in Q2 from 90.9 per cent in Q1.
Colliers said in its survey, the Asia Pacific Office Market Overview, that it expects CBD office rental rates to decline further in the second half of 2012 due to the uncertainty in the euro zone and a possible supply overhang.
Hong Kong is another regional market that experienced a downward correction in rentals in Q2 this year.
They edged down 0.7 per cent, quarter-on-quarter, after a drop of 5.5 per cent in Q1.
Meanwhile, most cities in China and Australia saw positive rental growth in Q2.
Colliers said the office leasing market has been relatively steady, with firms in the finance and IT industries among the most active with enquiries.
Source : Channel NewsAsia – 14 Aug 2012