>

>

Office rents in most markets to improve in 2017, says C&W

By Tan Chee Yuen

/ Cushman & Wakefield |

August 5, 2016 9:00 AM SGT

Most markets in the region will see an improvement in office rents on the back of stronger occupancies in 2017, according to Cushman & Wakefield’s Mid-Year Outlook Report 2016. Across the 30 major cities tracked by Cushman through 2017, 14 may even post record rents.

Cushman expects falling vacancies through 2017 to favour landlords in Tokyo, Sydney and Melbourne, where strong demand will keep Grade A vacancies hovering close to their equilibrium of 7%. Meanwhile, rents could begin to stabilise in core markets, including Singapore, Brisbane and Perth.

Singapore is expected to post the highest vacancy increase of eight to nine percentage points among core markets between 2015 and 2017. Since 1Q2015, rents for Grade A properties in the CBD have slipped more than 15% and will likely decline another 7% to 10% y-o-y in 2016 before stabilising in 2017.

The city state will witness a record supply of four million sq ft of office space to be delivered by next year. Leasing activity is also moderating as international banks continue to shrink their footprints. A slowing economy and low unemployment rate are also holding back activity.

However, office investment in Singapore saw a resurgence in 2Q2016 with landmark transactions this year. For instance, the sale of Asia Square Tower 1 to the Qatar Investment Authority for US$2.5 billion ($3.35 billion) set a new record in Asia-Pacific for the largest single-asset transaction in the last five years.

Tags:

office Asia Square Tower 1

Follow Us

Follow our channels to receive property news updates 24/7 round the clock.

Subscribe to our newsletter

Top Articles

1

Emerald of Katong hits 99% sales at launch, averaging $2,621 psf

2

Kingsford sells 76% of Chuan Park units at an average price of $2,579 psf

3

Is it a Good Deal?: $1.03 million for a four-room HDB flat in District 10

4

Sim Lian Group’s Emerald of Katong: Will it be another top-seller?

5

CDL sells 20% of Union Square Residences at an average price of $3,200 psf

Our Site

Follow Us

Property Research

Condos

HDBs

Landed

Commercial

Industrial

Properties For Sale

Properties For Rent

Edgeprop.sg (previously known as The Edge Property Singapore) is the best property portal for real estate agents, investors, home-seekers and sellers alike in Singapore. On EdgeProp, you will be able to find the latest and hottest property news, property listings, and access tools for your research and analysis.

Whether you are looking to buy, sell or rent apartments, condominiums, executive condos, HDBs, landed houses, commercial properties or industrial properties, we bring you Singapore’s most comprehensive and up-to-date property news and thousands of listings to facilitate your property decisions. Click into any listing to check out the new AI Redesign tool to envision your property based on your preferred style, be it Scandinavian, Minimalist or many others.

Make data-driven property decisions with our easy-to-use free and paid tools. The Edge Fair Value tool lets users calculate the fair value of a property, while the En Bloc Calculator helps to determine the probability of a Singapore project being put up for collective sale. Our whole new Research tool provides you data on past transactions, price trends, and more for condos, HDBs, landed houses, commercial properties and industrial properties.

Aside from that, EdgeProp also offers a market trends tracker that lets you access historical property data, sales volume and compare how similar properties are selling, a heatmap that shows you where Singapore’s most popular property sales locations are, a HDB lease tool to calculate your HDB tenure, an affordability calculator, and property alerts to track your preferred Singapore property by project or location, as well as information on new launches.

On the lookout for undervalued property or looking to rent? EdgeProp’s powerful search filters will let you personalise your property-seeking experience – whether you are looking for a property near MRT stations, amenities like schools, or within a HDB Estate or District – so that you find exactly what you are looking for.

View More

Close Ad

00:00