Looking for property investment in Singapore? Contact us now.

Singapore Q4 office rents climb 12.2%

Singapore saw a 12.2 percent growth in rents in the fourth quarter of 2010, while rents in Shanghai and Beijing also continued to rise.
The Asian office market continued to take advantage of the improved business sentiment in Q4, as Asian corporations expanded to capture a larger market share and multinational firms focused on growth markets in the region, said CB Richard Ellis (CBRE).
In 2010, the aggregate net absorption of prime office space in 16 key Asian cities more than doubled the level seen in 2009 and reached levels not seen since the 2007 global financial crisis, said CBRE in its Q4 2010 Asia MarketView report.
"Although there were signs that Asian economic growth was slowing towards the end of the year, office demand remained strong in the fourth quarter of 2010," said John Falkiner, Managing Director of Transactions for Asia at CBRE.
"The period saw a steady flow of pre-commitments to new development schemes and cities including Tokyo, Singapore, Beijing, Mumbai and New Delhi reported a number of large leasing deals involving premises of over 100,000 sf."
Asia's overall vacancy rate further fell by 50 basis points quarter-on-quarter to 11.3 percent. Grade A space in CBD areas saw strong demand with vacancy rates in Singapore, Hong Kong and New Delhi dropping to levels below or at three percent.
Overall, Asian office rents jumped 3.9 percent quarter-on-qaurter in Q4 2010 and 9.6 percent for the whole year, as cities in Singapore and Greater China continued to see strong demand for prime leased office premises.
Singapore rents surged 12.2 percent in Q4, while Hong Kong rental growth slowed to 6.6 percent quarter-on-quarter, from the 10.9 percent quarter-on-quarter growth seen in Q3.
Meanwhile, Tokyo, Ho Chi Minh City and Seoul saw declines in prime office rents ranging from 0.2 percent in Seoul to 4.5 percent in Hanoi.