REIT Financial News - 5 APR 2010: S'pore offices attractive due to cheaper rents

S'pore offices attractive due to cheaper rents compared to other financial centres. See news.

Key Points

• Second half of last year, annual average gross rent of an office in Singapore was about S$76 per square foot. Closest competitor, Hong Kong, was priced at S$225 per square foot. 
• Singapore was ranked the 24th most expensive office location, up two notches compared to the previous survey in the first half of last year.
• Singapore's office rents have continued to decrease, but pace of decline has slowed to 6.5 per cent in the second half of last year, compared to 42.3 per cent in the first half of 2009.   
• Colliers International said the Singapore office market is expected to see a modest recovery with up to five percent increase in rents in 2010.

Author's Note
Another piece of news that suggests the bottom of the office market may have been reached.

For the past few weeks there have not been much movement for the office Reits CCT and K-Reit. They have been largely trading in a narrow range around 1.08 to 1.10.