Source of News
Singapore's commercial property sector will likely see a 15-20 per cent increase in rental values next year, after a 22 per cent growth this year, according to CBRE.
This will be driven by strong occupier demand for office space in Singapore despite plenty of supply coming on stream.
CBRE points to the Marina Bay Financial Centre (MBFC) as one example of strong demand. The first phase of MBFC was fully let out by the time its doors opened this year.
The property consultant said the supply pipeline is reasonable next year, with over 5 million square feet of office space currently under construction in the central business district. Half of the supply has already found tenants.
"From a relative standpoint, Singapore is quite competitive in terms of office occupation costs... Hong Kong office space is commanding almost double the rents Singapore is currently set at, so I think there is room for rental growth in Singapore, without it becoming uncompetitive," said Moray Armstrong, Executive Director, Office Services, CBRE.
Related Posts
- K-Reit's proposed acquisition of a one-third stake in MBFC phase 1 and proposed divestment of KTGE - 11 OCT 2010
- SUNTEC Reit completes acquisition of a one-third interest in MBFC Towers 1 and 2, and the Marina bay Link Mall - 9 DEC 2010
- SUNTEC Reit proposed acquisition of a one-third interest in Marina Bay Financial Centre Towers 1 and 2 and the Marina Bay Link Mall - 26 OCT 2010
No comments:
Post a Comment