Rental rates in the Singapore office market will likely climb this year, amid expectations that foreign firms will increase investments on the back of improved economic conditions, said Keppel Land.
The property group said that as the Singapore office market “continues to run its course, property consultants are predicting another year of double-digit rental growth, barring unforeseen circumstances.”
It cited data released by property consultancy firm CB Richard Ellis (CBRE), which noted that Grade A office rents will increase 16.2 percent to S$11.50 psf per month by end-2011, from last year’s S$9.90 psf per month.
However, Keppel Land’s forecast was still below the S$18.80 psf per month rental rates recorded in Q3 2008, shortly before the global economic crisis.
The company added that office take-up in the country climbed to 1.65 million sq ft in 2010, up from the 0.24 million sq ft decline in 2009.
“This further validates the trend of growing occupier demand in times of better economic conditions.”
Source: Commercial Guru
