Office space vacancy in Singapore at their lowest since 2008, say analysts
- POSTED: 06 Jan 2014 20:27
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Vacancy levels for office space in Singapore are at their lowest since 2008, according to property consultant CBRE.
SINGAPORE: Vacancy levels for office space in Singapore are at their lowest since 2008, according to property consultant CBRE.
Rentals for Grade A office space are expected to increase in the year ahead as core central business district space tightens.
CBRE said Singapore's islandwide office space vacancy rate fell to 4.4 per cent as of fourth quarter 2013 - the lowest since the second quarter of 2008.
Vacancy rate for the Central Business District (CBD) core submarket declined to 4.8 per cent.
The strong leasing interest in the Grade A segment resulted in a major vacancy decrease of 2.9 percentage points to 6.3 per cent.
Looking ahead, CBRE said the pipeline of new office supply for the next two years remains limited with two major CBD projects: the CapitaGreen project in Raffles Place and South Beach near City Hall.
CapitaGreen represents the only new Grade A development scheduled to complete between now and the second half of 2016.
As a result, CBRE expects rental growth to strengthen in 2014 and 2015, led by the Grade A segment of the market.