Singapore’s office market continues to rally in Q3 2013 with average Grade A office rents climbing 2.8 percent quarter-on-quarter, according to a Cushman & Wakefield report.
All major submarkets reported growth in average rents while overall vacancies fell across the CBD. For instance, vacancies at Shenton Way slipped by almost one percentage point to four percent by end-Q3. Over at Raffles Place, vacancies fell below five percent while Orchard Road registered the lowest vacancy level among the key markets at below 0.5 percent.
Meanwhile, the completion of Asia Square Tower 2 contributed to the average vacancy rate in Marina Bay jumping to 11.2 percent in Q3 from 3.6 percent in the previous quarter. Nevertheless, the average vacancy rate within the area is expected to drop due to its image as a rising business magnet as well as the space abortion in Asia Square Tower 2, and therefore rents here are expected to hold firm.
Toby Dodd, Managing Director at Cushman & Wakefield Singapore, said: “The office market has continued to perform well in the third quarter, which we forecast to continue through to 2014.”
“The recovery that started during 1H has continued, supported by the Singapore economy which is likely to post a stronger expansion for the full year of 2013 than in 2012, and the picture beyond this year looks encouraging,” added Sigrid Zialcita, Managing Director for Cushman & Wakefield’s research team in Asia Pacific.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email email@example.com