Singapore office rents post highest increase in decade
Singapore office rents have posted their highest quarterly increase in more than a decade, Jones Lang LaSalle said on Monday.
Average rents of Prime Grade A office space in the 180-450 sq-m category rose 13% quarter-on-quarter, the real estate money management and services firm said.
It was the highest quarterly rise since the fourth quarter of 1994 and reflected a year-on-year increase of 45.8%, it said.
‘Year-to-date growth as at the third quarter of 2006 doubles that for the whole of 2005 and is only slightly off 2000 levels,’ Jones Lang LaSalle said. ‘Current Prime Grade A rents are only 4.3% off the 2001 peak but still some 25% off the 1996 peak.’
The firm said the rental increase comes amid tightening supply and strong expansion in the financial and business sector. ‘Excellent infrastructure, relatively low occupation costs and proximity to the emerging Asian markets and their regional clients are the main draws of locating in Singapore.‘
While Singapore rents are rising, they are still very competitive compared with other major cities, it added.
Source: The Business Times, 02 0ctober 2006