Office rents in Singapore posted their biggest jump since the end of 2007 in the third quarter, led by increasing demand from financial institutions, insurance firms and professional business services companies.
According to property consultants CB Richard Ellis (CBRE), prime rents in Singapore climbed 7.2 per cent from the previous three-month period, to S$7.40 per square foot per month.
Major leasing deals in Singapore reported during the period primarily focused on new Grade A developments.
Vacancy in Grade A offices fell due to a net absorption of 1.2 million square feet, the largest since 2000, said CBRE.
Led by Singapore and Greater China, overall office rents in Asia rose 3.2 per cent quarter-on-quarter in the third quarter, making it the second straight quarter of growth and confirming the recovery of office demand in the region.
Demand for quality space arising from relocation or expansion of businesses grew noticeably, a trend that manifested itself in the decline in vacancy in new office buildings in selected markets across the region.
Going forward, CBRE said continued economic recovery in Asia suggests office demand is grounded more solidly here, as compared with other regions.
Source : Channel NewsAsia – 18 Nov 2010