Singapore office rents rose 16.7 per cent between July and September from the previous quarter and are likely to increase further, albeit at a slower pace, property consultancy CB Richard Ellis (CBRE) said on Tuesday.
Prime office rents in Singapore have hit historic peaks, driven by strong demand from the financial and banking industriesDespite some market uncertainty triggered by the US sub-prime mortgage meltdown, prime office rents in Singapore have hit historic peaks, driven by strong demand from the financial and banking industries.
Monthly prime office rents were at an average of $12.60 (US$8.55) per square foot (0.093 sq metre) during the third quarter, 82.6 per cent higher from a year ago.
But CBRE said the market was moving into a period of 'more modest rental growth' with the government reacting to rein in escalating business costs by releasing more land sites for office developments.
'We have observed tenants' increasing resistance to rental hikes while occupiers are more prepared to explore lower cost locations and alternative premises,' said Moray Armstrong, office services executive director at CBRE.
Developers such as CapitaLand and Keppel Land have enjoyed strong office rent returns in the past year. -- REUTERS
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