S’pore’s office vacancy rates expected to rise

S’pore’s office vacancy rates expected to rise

Singapore’s office vacancy rates are expected to rise further across all grades and micro markets, with a peak expected in 2013.
In the first quarter of 2012, island-wide vacancy in Singapore increased to 7.3 per cent in the first quarter of the year.

In the core central business district, which covers Raffles Place, Marina Centre, Shenton Way and Marina Bay, the vacancy rate increased to 9.3 per cent from 8.8 per cent the previous quarter.

Grade A rents have declined, falling 3.6 per cent quarter-on-quarter to S$10.60 psf/month.

The quarterly net absorption rate, a key demand indicator, stands at a positive 587,000 square feet, boosted by the high 70 per cent pre-commitment level at the Marina Bay Financial Centre Tower 3 project in March.

Strong leasing interest are coming from the energy/commodities, professional and legal sectors. Whilst rents are expected to trend slightly downwards, significant rental correction is not expected as compared to previous cycles.

Source : Channel NewsAsia – 9 May 2012