A billion-dollar office block is being erected at the site of Market Street Car Park in Singapore's financial district. As the market for prime-grade office space is softening, property analysts are wary that the developers may not achieve the rentals they are seeking. Property group CapitaLand, together with CapitaCommercial Trust (CCT) and Mitsubishi Estate Asia (MEA), will jointly develop the former...
Singapore Office
Singapore's retail and industrial property sectors are expected to continue to outperform the office market, which is feeling the impact of dampened demand from financial firms, analysts say. Across the board, the pace of increase for rentals and prices in the three sectors declined in the fourth quarter of last year, data released by the Urban Redevelopment Authority (URA) showed yesterday. But the...
Vacancy rates of Grade A offices in the central business district (CBD) rose to 6.9 percent in the fourth quarter last year, according to property consultancy Savills Research in its latest report on the office sector on Wednesday. It said vacancy rates for such premium office space have remained below 5 percent over the last five quarters. The report also pointed out that the Shenton Way area recorded...
Office rents have started to show signs of falling and analysts say the pipeline of new office space is not going to help. According to Colliers International, rents in the Central Business District fell by 1.6 per cent on-quarter in the fourth quarter of 2011. The decline was worse in the Grade A micro market of Raffles Place and New Downtown, where rents fell by 4.3 per cent. This is the first drop...
Office rents in the Raffles Place business district have stalled, according to figures from property services firm, DTZ. Prime office rents were unchanged in the second half of the year, after rising by 5.4 per cent and 3.3 per cent in the second and first quarters respectively, DTZ said. DTZ attributed the stagnation to occupier concerns over the worsening Eurozone debt crisis. The average office rent...
Property consulting firm Savills expects Singapore's overall rents for Grade A office space to trend downwards by 15 per cent in 2012. In its latest report, Savills adds that capital values of these properties will also soften by 10 per cent. It says that "negative fallout arising from the prolonged financial turbulence and global economic slowdown has intensified, resulting in slower absorption of Grade...
Singapore's office property market cooled in 2011, weighed down by concerns over the anemic growth in the US and the eurozone debt crisis. Analysts said vacancies are likely to rise next year as a result of economic slowdown and weaker business. There may also be some downward pressure on rentals. Several financial institutions have moved to bigger and shinier offices this year. Standard Chartered...
Office rents in Hong Kong and Singapore are set to fall, brokers say, as their markets start to reflect the slowdown in trade and investment caused by the euro zone debt crisis. In a mid-quarter review released yesterday, Jones Lang LaSalle forecast Grade A rents in Hong Kong to fall 5 to 6 per cent in the fourth quarter to US$1,643 (S$2,107) per sq m per year and 4 per cent in Singapore to US$786 per sq...
Singapore's office property market has lost its appeal as an investment, according to real estate firm DTZ. DTZ said demand for office space has declined, and the sector is now considered "cold". It defines "cold" as property that is more than 5 per cent overpriced, with potential yield below expectations. "Singapore has traditionally been a volatile market, and our rental outlook has been impacted by...
CapitaLand's joint venture with CapitaCommercial Trust and Mitsubishi Estate Asia has secured a loan facility with OCBC Bank for up to S$890 million to fund the purchase and redevelopment of the Market Street Car Park site. The loan has a five-year tenure and will be due in November 2016. It is secured by, among other things, a mortgage over the Market Street Car Park development. The site will be...