Cushman & Wakefield, the world’s largest privately held real estate firm, has released key findings on the Singapore Office market from their Q3 Office MarketBeat update today.
The Eurozone departing from its economic slump coupled with a rise in Singapore’s GDP has meant a continued buoyancy and strength in the Singapore office market into Q3 2013, and likely beyond. Good news for the office leasing market is exemplified by the fact that Singapore’s economy and finance sector is expected to grow by 10.6% in 2013, which is up by 4.5 percentage points compared to 3 months ago.
Average Grade A office rents have appreciated by 2.8% on a quarter-on-quarter basis with all the five major submarkets registering a rise in average rent. Overall vacancies fell across the CBD – as exemplified by Shenton Way where the calculated rate fell by almost one percentage point to 4% at the end of Q3. And Raffles Place’s vacancy dropped to a level below 5%. The lowest reading among the main submarkets was in Orchard Road with a vacancy of below 0.5%. The exception to this trend was Marina Bay, where the delivery of new tower to the market pushed up Marina Bay’s average vacancy rate to 11.2% from 3.6% recorded a quarter ago. However – Marina Bay’s vacancy rate is expected to drop thanks to the space abortion in Asia Square Tower 2 and the area’s image as the emerging business magnet, and therefore rents here are forecast to hold firm.
Toby Dodd, Managing Director, Cushman & Wakefield Singapore comments: “The office market has continued to perform well in the third quarter, which we forecast to continue through to 2014.”
Sigrid Zialcita, Managing Director for Cushman & Wakefield’s Research team in Asia Pacific, comments: “The recovery that started during H1 has continued, supported by the Singapore economy which is likely to post a stronger expansion for the full year of 2013 than in 2012, and the picture beyond this year looks encouraging”