| | | |  | | |
| | | | | | | Office rents in Singapore surged to another high in the third quarter.
According to Colliers International, Grade A office space in the regional locations, such as Tampines, saw the largest hike with rents jumping 15.4 percent from the second quarter.
Grade B office space in Raffles Place was a close second, chalking up a 15.3 percent growth while its Grade A rents marched up a further 8.6 percent to S$6.92 per square foot.
This brings the increase of Grade A rents in Raffles Place in the first nine months of the year to 34 percent.
Colliers says rents are underpinned by strong demand on the back of a rosy economic outlook.
The severe tightening in supply as a result of a lack in new office completion has aggravated the situation.
Colliers predicts Grade A office space in Raffles Place will surpass the S$7.77 per square foot peak reached in 2001 by the middle of next year if the blistering pace continues.
Rents may test 1996's all time high of S$9.77 per square foot in three years' time or even earlier.
The report adds that capital values are also creeping up - with Grade A office space in Raffles Place up 4.1 percent to $1,260 per square foot from the last quarter. - CNA/ch
|
