Singapore office rents lift after straight six quarters fall

Singapore office rents are picking up after sliding for six consecutive quarters, local media reported on Friday.

Property consultancy CB Richard Ellis (CBRE) said that the economic recovery and pent-up demand have boosted monthly prime office rents from about 6.70 Singapore dollars per square foot (4. 82 U.S. dollars) in the first quarter to 6.90 Singapore dollars per square foot (4.97 U.S. dollars) this quarter, a rise of 3 percent, local daily The Straits Times reported.

Outside the Central Business District (CBD) have held steady in the past two to three quarters, allowing tenants options of cheaper alternatives.

Rents for core and fringe CBD space have risen despite lingering concerns over an impending supply glut and the hollowing- out of existing buildings within the CBD.

Leasing momentum also stayed strong, due in part to pent-up demand from multi-nationals, which were finally in a position to act on their space needs.

CBRE added that the year-long lull after the financial crisis struck in September 2008 has passed.

Source: Xinhua