Office space in S’pore 3rd most expensive in Asia-Pacific

Singapore was the third-most expensive office location in the Asia-Pacific region in the third quarter of this year.

According to property consultant Colliers International, it is the fifth straight quarter that Singapore has held that rank, with an annual gross rent of US$67 per square foot. That is a 15.6 per cent increase from the previous quarter.

Topping the list is Tokyo, which remained in first place with an annual gross rent of US$106.04 per square foot while Hong Kong remained in the second spot with an annual gross rent of about US$96.81 per square foot.

Rounding up the top 10 list are Sydney, Perth, Mumbai, Brisbane, Ho Chi Minh, Delhi and Melbourne.

Colliers says the increase in rent in Singapore can be attributed to robust occupier demand amid a buoyant economy, and a stronger Singapore dollar.

However, it noted that in local-currency terms, Singapore’s central business district Grade A office rents grew at a more moderate rate of 8.7 per cent from the previous three months to S$7.36 per square foot per month.

Colliers is forecasting that Singapore’s office rents will climb higher in the months ahead.

That is because of its view that Singapore is well-poised to ride on the region’s growth.

It said continued economic recovery and capital inflows into the Asia-Pacific region will likely bolster occupier demand for office space here over the next 15 months.

Also, Colliers said that companies’ flight to quality property, as well as their need to secure additional office space, may place further pressure on prime office vacancies here.

Source : Channel NewsAsia – 10 Nov 2010

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