>

>

Singapore to lead 2019 office rental growth in the Asia-Pacific: M&G Real Estate

By Charlene Chin

/ EdgeProp |

February 22, 2019 2:11 PM SGT

Singapore is expected to record the highest office rental growth in 2019, outperforming other countries in the Asia-Pacific (APAC), according to M&G Real Estate in its Asia Real Estate Market Outlook report.

Singapore’s office market will take the lead due to “healthy demand”, as well as tight supply over the next two years, as it positions itself as a business hub for foreign corporates seeking to set up an APAC head office, the report states.

In both Singapore and Australia, the growth in the financial and business services sector has driven demand for office space in prime CBD buildings, the report notes.

In Japan, Osaka and Nagoya are expected to show “relatively strong” office rental growth over the next 12 months, it says. Prime office market in Osaka is forecasted to have limited supply in the next two to three years. Meanwhile in Tokyo, the prime office market is expected to see negative rental growth due to a significant increase in supply in the next two years.

Fringe office sub-markets in Kowloon East, Hong Kong, and North Sydney, Australia, could see an uplift in rents for the medium term, as rents in the CBD are expected to hover at peak levels. Increasingly, a “hub and spoke model” - where firms have a main headquarters in the CBD and an office in lower-cost markets - is more prevalent in Hong Kong and Sydney.

In the retail segment, high street retail rental is forecasted to grow in the range of 1.5% to 2.5% in key APAC cities, such as Hong Kong, Seoul and Sydney. Prominently, Sydney’s high street retail is likely to benefit from the revitalisation of the CBD, linked to the completion of a new pedestrian zone and light-rail line, highlights the report.

However, in Australia, the overall outlook is challenging - regional shopping centres will face headwind, caused by a shift of retail sales from physical stores to online, a trend which is expected to persist in the medium term.

M&G Real Estate expects rental growth in regional shopping centres to moderate further in 2019.

Tags:

office rental growth 2019 Singapore

Follow Us

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

Subscribe to our newsletter

Top Articles

1

UOL and CapitaLand to acquire Thomson View Condo for $810 mil

2

Emerald of Katong draws 10,000 as crowds surge at project sales galleries during Deepavali weekend

3

Is it a Good Deal?: A freehold three-bedroom in D9 sold for $3.27 million, making a $2.03 million profit

4

Chuan Park attracts 5,000 visitors on first day of preview

5

Executive Condo launches in the pipeline to test new highs of $1,700 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