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SINGAPORE: Property consultancy DTZ said office and industrial rents here continued their downward trend in the second quarter of this year.
For the office market, average monthly gross rents of prime offices in Raffles Place fell by 19 per cent to S$9.70 per square foot, compared to a 25 per cent fall in the previous quarter.
Office rents in the Central Business District (CBD) fringe and de-centralised areas suffered a larger decline compared to the previous quarter.
The rents in Beach Road and North Bridge Road slid by 20 per cent to S$6.20 per square foot per month, worse than the previous quarter's 13 per cent drop.
With office rents – especially those in the CBD – falling substantially, the rental gap between those in the CBD and those outside has narrowed.
Office rents in Marina Centre were 12 per cent lower than those in Raffles Place, less than the 18 per cent gap recorded during the peak in the third quarter of last year.
Turning to the industrial market, DTZ said average monthly gross rents fell by 6.8 per cent for first-storey private industrial space and by 8.1 per cent for upper-storey space. This is the largest rental contraction since the third quarter in 2003.
Due to the large supply overhang in the office and industrial markets, DTZ expects the two sectors to remain soft until 2011.
- CNA/so
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