Rental growth for offices in secondary office areas at the fringe of Singapore’s CBD and outskirt areas outpaced those in Raffles Place in the first quarter.
According to DTZ Research, the average gross rent of offices in Raffles Place rose 3.3 per cent quarter-on-quarter to S$9.30 per square foot per month in the first quarter, compared to a 7.5 per cent to 10 per cent increase in other areas.
The average gross rent in the Anson Road – Tanjong Pagar area rose 9.6 per cent on quarter to S$6.85 per square foot per month.
DTZ said the analysis of rents covers only completed buildings.
It was also found that average rents in the Anson Road – Tanjong Pagar area were catching up with those in the Shenton Way – Robinson Road area.
DTZ attributed this to the area’s makeover and addition of new and well-specified good quality buildings like Mapletree Anson and Twenty Anson.
GuocoLand’s mixed use project at Tanjong Pagar would also yield a million square feet of high quality office space, further augmenting the growing prominence of this business precinct.
Outside the CBD, the average rent for office space in the Novena Belt saw an increase of 7.5 per cent on quarter to S$7.20 per square foot per month.
Meanwhile, the average rent at Harbourfront rose 7.7 per cent on quarter S$7.0 per square foot per month in the first quarter. This is similar to the average of S$7.10 per square foot achieved in the Shenton Way – Robinson Road area over the same period.
Source : Channel NewsAsia – 30 Mar 2011