S’pore office rents 15th highest in the world

Singapore is the 15th most expensive office location globally, in terms of occupancy cost, according to property consultant Colliers International.

Its Global Office Real Estate Review for the first half of 2010 showed Singapore surged nine spots from six months ago.

The report found Grade A Central Business District (CBD) office space here has an occupancy cost of US$58.08 per square foot per year as of June.

The increase comes after Singapore’s Grade A CBD office rents nudged up by 7.6 per cent in local currency terms.

Hong Kong retained its status as the most expensive office location, followed by London West End and Tokyo.

Colliers said a rapidly-improving business environment amid an economy that is speeding ahead led to the jump in office property prices.

It added that Singapore’s office property market accelerated in the third quarter, as robust occupier demand emboldened landlords to raise rents.

Collier also said the brisk leasing activity put a squeeze on the office market, such that the average occupancy rate of Grade A office space in the CBD reached 94.1 per cent by end of September.

This is 1.1 percentage points higher than that registered in the second quarter.

Colliers expects the office market here to maintain its growth in the last quarter of 2010, albeit at a moderate pace of not more than 10 per cent.

Source : Channel NewsAsia – 5 Oct 2010

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