S’pore, Beijing post strong rental growth in Q3

Among business centres in Asia Pacific, Singapore and Beijing saw landlords enjoying the strongest growth in rentals in the third quarter of 2010.

According to a Jones Lang LaSalle survey, both cities’ Grade A rentals recorded a quarterly net effective rental growth of 10.9 per cent.

Overall, the Asia Pacific Office Rental Index showed an increase of 1.8 per cent in the third quarter.

In terms of average Grade A rental values received by landlords, Singapore currently ranks fourth in Asia Pacific, behind Hong Kong, Tokyo and Mumbai.

Jones Lang LaSalle said its survey measures each city’s average net effective rent, which aims to reflect net rental income receivable by property investors.

Landlords in Singapore were able to receive an average rate of 671 US dollars per square meter per annum, after adjusting for rent-free and fit-out incentives.

This is calculated by deducting property taxes and maintenance charges from the average gross effective rent payable by tenants.

Source : Channel NewsAsia – 22 Nov 2010

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