Office rents surge in Q3

Office rents in Singapore posted their biggest jump in the third quarter since the end of 2007, led by increasing demand from financial institutions, insurance firms and professional business-services companies.

According to property consultancy CB Richard Ellis, prime rents in Singapore climbed 7.2 per cent from the previous three-month period, to $7.40 per sq ft per month.

Major leasing deals in Singapore reported during the period focused primarily on new Grade A developments.

Vacancy in these Grade A buildings fell due to a net absorption of approximately 1.2 million sq ft, the largest since 2000, CBRE said.

Led by Singapore and Greater China, overall office rents in Asia rose 3.2 per from the previous three months, making it the second straight quarter of growth and confirming the recovery of office demand in the region.

Demand for quality space arising from relocation or expansion of businesses grew noticeably, a trend that manifested itself in the decline in vacancies in new office buildings in selected markets across the region.

Continued economic recovery in Asia suggests office demand is grounded more solidly here, as compared with other regions, CBRE said.

Source : Today – 19 Nov 2010

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