Average monthly gross rents of Premium grade office space in the Raffles Place/New Downtown area rose 2% q-o-q to $9.60 psf in 2Q2013, according to Colliers International in its latest office report. Premium grade and Grade A2 office space in the CBD saw average monthly gross rents rise marginally q-o-q from $8.41 to $8.42 psf.
Hence, rents of premium grade office space rose for the first time since 4Q2011, according to Colliers. Meanwhile, office rents in other micro-markets remained stable. Average occupancy rate of premium grade office space in the Raffles Place/ New Downtown micro-market increased to 93.5% in 2Q2013, from the 90.2% in 1Q2013. The expectation is that rents of premium grade office space in the Raffles Place/New Downtown micro-market will increase by up to 5% in 2H2013, while office rents in the other micro-markets will stay relatively flat, says Colliers.
Owners of office space have also been active in putting their properties on the market, including units at Samsung Hub, Springleaf Tower, Sunshine Plaza and Suntec Tower. For instance, an 883 sq ft unit at Samsung Hub was sold for $3,500 psf, and a 10,333 sq ft unit at Springleaf Tower was sold for $2,200 psf. Both were the highest achieved prices in their respective developments. However, the average capital value of premium grade and Grade A office space in the Raffles Place/New Downtown micro-market remained flat at $2,640 psf and $2,390 psf respectively, owing to the lack of signs of a global economic recovery.
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