The Singapore office property market continued on the path of strong recovery in the first quarter of this year, according to property consultancy firm Colliers International in its latest study.
It said growth was underpinned by rising business confidence that spilled over from the country’s strong economic performance in 2010.
Average monthly gross rents of Grade A office space in the Raffles Place and New Downtown city areas chalked up further growth of 8 per cent over the previous quarter to reach S$9.72 per square foot.
Other areas in the Central Business District followed suit, climbing 10.2 per cent on-quarter.
Colliers said it expects the rosy demand outlook to spur developers to start on the development of new projects this year.
Office rents for 2011 are expected to trend up at between 15 and 20 per cent.
However, this will be lower than the almost 30 per cent rise seen last year.
Source : Channel NewsAsia – 23 Mar 2011