Prices of commercial properties were up in the third quarter this year, with office space posting the highest increase of 1.0 percent, new data from the Urban Redevelopment Authority (URA) revealed.
This is still lower than the 1.5 percent rise in the previous quarter.
For shop space, prices moved up by 0.4 percent, but at a slower pace from the 1.7 percent climb in Q2. During the same period, prices of multiple-user factory space went up by 0.9 percent compared with the previous 0.5 percent increase.
Meanwhile, rental prices for commercial space also headed north in Q3. For office space, there was a 0.8 percent rise compared to a 0.2 percent gain in Q2.
Retail space rental prices saw an increase of 0.4 percent last quarter, following a 0.8 percent decline in Q2.
Industrial space recorded the biggest rental increase with a 4.4 percent hike in Q3, much higher than the previous 0.1 percent rise.
Desmond Sim, Associate Director, CBRE Research, said: “The URA Q3 2013 statistics showed no significant changes for the office sectors, whilst the retail sector remained stable.”
“Prices of office space rose 1.0%, following a 1.5% growth in Q2 2013. This growth is in line with the GDP outlook which is forecasted to grow by 2.5% to 3.5% in 2013. Going forward to the next quarter, we expect the office market is to see recovery in Grade A rents. The retail market is likely to remain firm, albeit with inflationary growth.”