It’s almost back to pre-crisis levels.
Here’s
a heads-up for firms looking to establish headquarters in Singapore. Office
space is rapidly becoming a scarce commodity in the country, a report by
Colliers International revealed today.
The
report noted that all Grade A office micro-markets across the island have
reached near-full occupancy rate by the end of June 2014. Occupancy rates are
all beyond 95%, with the highest rate of 99.4 per cent recorded for the Shenton
Way/Tanjong Pagar micro-market.
“As
growth momentum in both the global and local economy gather pace, firms across
most industries saw brighter prospects during the quarter. Consequently, the
office property market witnessed a new wave of leasing activities in both new
and upcoming office developments – on the back of companies’ increasing
expectations of business improvements, their ramped-up plans for growth and
continued flight to quality,” stated the report.
Here’s
more from Colliers:
International
property consultant, Colliers International’s latest quarterly research report
revealed that the office property market in Singapore experienced a stronger
demand in 2Q 2014, amid a positive business climate.
Mr
Marcus Loo (劳耀萳),
Executive Director of Office Services, says, “The last time the market achieved
such similarly-high occupancy rates was in 1Q 2008, when the market was at its peak
before the global financial crisis. Back then, banks were primarily the ones
that were progressively leasing space, as most of them were on an expansionary
mode. Rents also shot up to levels not seen before, at as high as S$19.50 per
sq ft per month for newer and higher-grade buildings.
However,
the situation today is somewhat different – with demand coming from a myriad of
different industries, such as oil and gas, insurance, telecommunications,
pharmaceuticals, among others. This is a much more balanced state, which has
inevitably led the landlords to feel confident about the market and its
outlook.”
Outside
the Central Business District, the office space market also saw several leasing
activities in 2Q 2014. In fact, the largest leasing deal during the quarter –
and to date this year – was the 210,000 sq ft of office space at Novena Square,
which will be vacated by Procter & Gamble and reportedly taken up by the
CPF Board.
Business & Investment Opportunities
Saigon Business Corporation Pte Ltd (SBC) is incorporated
in Singapore since 1994.
No comments:
Post a Comment