Singapore’s office market has been ranked among the top five in the “HOT” category in the Asia Pacific, according to a Money into Property report released by DTZ.
In an article published by Singapore Business Review, DTZ said the forecast for the commercial and industrial market in Singapore was based on a projected economic growth of between four and six percent.
“Singapore's commercial and industrial markets remain in the HOT category, similar to the Q4 2010 findings, as we expect continued price and rental increases based on the projected economic growth of 4-6 percent in 2011 and over the next few years,” said Chua Chor Hoon, Head of South East Asia Research at DTZ.
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Showing posts with label News. Show all posts
S'pore still hot for property investment
Singapore’s office, retail and industrial property markets were still “hot” prospects for investment in the first quarter, according to the latest Money into Property report released by DTZ.
“This is similar to the Q4 2010 findings, as we expect continued price and rental increases based on Singapore's projected economic growth in 2011 and over the next few years,” said Chua Chor Hoon, DTZ’s Senior Research Director for South East Asia.
“The Singapore office market is ranked among the top five in the 'hot' category among Asia-Pacific cities covered in this study. Capital values are expected to re-price at a faster rate in 2011 compared with 2010 with growing interest from institutional investors.”
“This is similar to the Q4 2010 findings, as we expect continued price and rental increases based on Singapore's projected economic growth in 2011 and over the next few years,” said Chua Chor Hoon, DTZ’s Senior Research Director for South East Asia.
“The Singapore office market is ranked among the top five in the 'hot' category among Asia-Pacific cities covered in this study. Capital values are expected to re-price at a faster rate in 2011 compared with 2010 with growing interest from institutional investors.”
Anson House sold for $148m to ING fund
(SINGAPORE) Anson House has been sold for $148 million or $1,916 per square foot of net lettable area to a property fund managed by ING Real Estate.
Anson House: Based on rents currently being paid by tenants, the net yield on the purchase is said to be about 3.8 per cent
Savills Singapore is understood to have brokered the sale through a private treaty deal.
The office block was sold by a private high net worth individual investor who picked up the property in 2009 for $85 million from a fund managed by Australia's Macquarie Bank. The latter had paid $129.5 million for the office block in 2007.
Anson House, a 13-storey building completed in 1999, has 103 carpark lots (on the second to fourth levels). The property is on a site with a remaining lease of about 85 years and has net lettable area (NLA) of about 77,244 square feet.
Anson House: Based on rents currently being paid by tenants, the net yield on the purchase is said to be about 3.8 per cent
Savills Singapore is understood to have brokered the sale through a private treaty deal.
The office block was sold by a private high net worth individual investor who picked up the property in 2009 for $85 million from a fund managed by Australia's Macquarie Bank. The latter had paid $129.5 million for the office block in 2007.
Anson House, a 13-storey building completed in 1999, has 103 carpark lots (on the second to fourth levels). The property is on a site with a remaining lease of about 85 years and has net lettable area (NLA) of about 77,244 square feet.
Singapore leads office rental growth in Q1
Singapore, along with China and India, has led the growth in office rentals and demand for office space in the Asia Pacific in the first quarter, according to CB Richard Ellis (CBRE).
The increasing pressure on prime rents across the Asia Pacific region continued its upward trend in the first quarter, as CBRE’s Asia Pacific Office Rent Index rose 3.0 percent, slightly lower than the 3.6 percent recorded in the previous quarter. Singapore and cities in Greater China led the growth, both in terms of expansionary demand and rental appreciation.
According to CBRE, the Singapore office market recorded a more measured start this year, as occupiers digested the significant expansion space taken up last year. Though average rents in prime office space continued to rebound, the pace of rental growth moderated to 3.6 percent quarter-on-quarter, from 12.2 percent in the previous quarter. Average monthly rents for prime office location stood at S$8.60 psf in the first quarter.
Completion forecast for 2012 has been lowered to 1.4 million sq ft from 2.1 million sq ft, as many developers rescheduled the launch of their new projects.
The increasing pressure on prime rents across the Asia Pacific region continued its upward trend in the first quarter, as CBRE’s Asia Pacific Office Rent Index rose 3.0 percent, slightly lower than the 3.6 percent recorded in the previous quarter. Singapore and cities in Greater China led the growth, both in terms of expansionary demand and rental appreciation.
According to CBRE, the Singapore office market recorded a more measured start this year, as occupiers digested the significant expansion space taken up last year. Though average rents in prime office space continued to rebound, the pace of rental growth moderated to 3.6 percent quarter-on-quarter, from 12.2 percent in the previous quarter. Average monthly rents for prime office location stood at S$8.60 psf in the first quarter.
Completion forecast for 2012 has been lowered to 1.4 million sq ft from 2.1 million sq ft, as many developers rescheduled the launch of their new projects.
Two redevelopment sites up for sale
Consortium that bought 70 Shenton Way is selling the site while Elizabeth Tower is the latest collective sale
TWO redevelopment sites have been put on the market - Elizabeth Tower and 70 Shenton Way.
70 Shenton Way: The office block has approval for redevelopment into a 60:40 commercial-residential project
A five-member consortium which includes Roxy-Pacific Holdings which bought 70 Shenton Way for $148 million in April last year is now seeking to sell the office block, which has approval for redevelopment into a 60:40 commercial-residential project, at a price said to be around $270 million.
TWO redevelopment sites have been put on the market - Elizabeth Tower and 70 Shenton Way.
70 Shenton Way: The office block has approval for redevelopment into a 60:40 commercial-residential project
A five-member consortium which includes Roxy-Pacific Holdings which bought 70 Shenton Way for $148 million in April last year is now seeking to sell the office block, which has approval for redevelopment into a 60:40 commercial-residential project, at a price said to be around $270 million.
Mega property sales on the cards in Orchard area
Two commercial buildings worth more than $2b could see stakes sold
(SINGAPORE) Property investment deals involving two plum commercial properties in the Somerset/Orchard Road area worth more than $2 billion could take place in the next few months.
On the block: TripleOne Somerset (above) is put up for sale by a property fund at about $1.2 billion or $2,132 psf of net lettable area, while Lend Lease is said to be mulling over a sale of 313@Somerset (next)
One is TripleOne Somerset - formerly known as the Singapore Power Building - with a price tag of about $1.2 billion or about $2,132 per square foot on net lettable area. The office and retail building is being marketed by CB Richard Ellis and Jones Lang LaSalle through an expression of interest exercise slated to close around mid-June. The seller is a property fund managed by Singapore-based Pacific Star.
(SINGAPORE) Property investment deals involving two plum commercial properties in the Somerset/Orchard Road area worth more than $2 billion could take place in the next few months.
On the block: TripleOne Somerset (above) is put up for sale by a property fund at about $1.2 billion or $2,132 psf of net lettable area, while Lend Lease is said to be mulling over a sale of 313@Somerset (next)
One is TripleOne Somerset - formerly known as the Singapore Power Building - with a price tag of about $1.2 billion or about $2,132 per square foot on net lettable area. The office and retail building is being marketed by CB Richard Ellis and Jones Lang LaSalle through an expression of interest exercise slated to close around mid-June. The seller is a property fund managed by Singapore-based Pacific Star.
S'pore office costs 3rd highest in Asia
(SINGAPORE) Singapore remained the third most expensive office location in the Asia-Pacific for the seventh consecutive quarter since the office market bottomed in the third quarter of 2009 after the Global Financial Crisis, based on the latest Q1 2011 analysis by Colliers International.
In fact, the gap in average Grade A CBD office rentals between Hong Kong (the most expensive location in Q1 2011) and Singapore has widened from 29.8 per cent in Q4 last year to 32.1 per cent in Q1 this year. 'This extends and reinforces Singapore's competitiveness against Hong Kong,' argues Colliers.
The widening gap follows an 11.9 per cent quarter-on-quarter increase (in both US dollar and local currency terms) in Hong Kong's average Grade A CBD rental value in Q1 2011, surpassing Singapore's q-on-q rental growth of 8.2 per cent in US dollar terms (or 6.1 per cent in local currency terms) over the same period.
Hong Kong, with its 11.9 per cent q-on-q rise Grade A CBD rental surge in the first three months of this year, has overtaken Tokyo as the most expensive office location in the region. The rental growth rate for Hong Kong was also the highest among 26 cities surveyed.
Colliers said the average Grade A CBD office rental value in Singapore rose from US$53.55 psf a year (or S$6.31 psf a month in local currency terms) in Q3 2009 to US$79.76 psf a year (or S$8.39 psf a month) in Q1 this year.
The average gross monthly rental for Grade A office space in Raffles Place/New Downtown stood at S$9.72 psf in Q1 2011, up 8 per cent from the preceding quarter and 41.9 per cent from the Q4 2009 trough. The Q1 rental figure is 45.7 per cent below the pre-Global Crisis peak of S$17.89 psf in Q3 2008.
A problem parks itself in the business district
Redevelopment of Market Street Car Park spells shortage of parking lots for neighbours.
(SINGAPORE) The impending redevelopment of Market Street Car Park (MSCP) into an office tower - at a time when parking lots have become a scarce commodity in the central business district - appears to have triggered concerns from some building owners.
Market Street Car Park: The public car park, which was built in 1964 and has 704 lots, is one of the major sources of lots in the CBD today
(SINGAPORE) The impending redevelopment of Market Street Car Park (MSCP) into an office tower - at a time when parking lots have become a scarce commodity in the central business district - appears to have triggered concerns from some building owners.
Market Street Car Park: The public car park, which was built in 1964 and has 704 lots, is one of the major sources of lots in the CBD today
Asia Pacific sees rise in Q1 office rentals
Asia Pacific, led by markets which include Jakarta, Hong Kong and Singapore, continued to experience robust growth in the office real estate market in the first quarter of 2011, according to Jones Lang LaSalle (JLL).
“The global comparison shows how the traditional Asian centres have outpaced the world in their recovery. At the same time, we can see a strong re-emergence of ASEAN as a force in Asia, with Jakarta now topping the table in both rental and capital growth as it reaps the benefits of the recovery. These are exciting times for Asia Pacific office markets,” said Jeremy Sheldon, Head of Markets in Asia Pacific at JLL.
Of the 26 Asia Pacific office markets, 16 witnessed growth in net effective rents during Q1, while for the remainder, rents steadied or registered minimal residual decreases. Total rental growth eased slightly as a result of weakness in Japan, with a 2.5 percent average quarter-on-quarter increase across the region. In the last quarter of 2010, quarterly rental growth averaged 2.7 percent.
“The global comparison shows how the traditional Asian centres have outpaced the world in their recovery. At the same time, we can see a strong re-emergence of ASEAN as a force in Asia, with Jakarta now topping the table in both rental and capital growth as it reaps the benefits of the recovery. These are exciting times for Asia Pacific office markets,” said Jeremy Sheldon, Head of Markets in Asia Pacific at JLL.
Of the 26 Asia Pacific office markets, 16 witnessed growth in net effective rents during Q1, while for the remainder, rents steadied or registered minimal residual decreases. Total rental growth eased slightly as a result of weakness in Japan, with a 2.5 percent average quarter-on-quarter increase across the region. In the last quarter of 2010, quarterly rental growth averaged 2.7 percent.
Commercial property a big draw among local investors
Commercial property in Singapore is proving to be a hot favourite among local investors, going by both sales figures and loans recorded in the first quarter of this year.
According to data from commercial brokerage firm Colliers International, mixed-use and commercial property accounted for S$2.26 billion (US$1.8 billion) or over 20 percent of the total property investment sales in the first quarter.
Global banking company HSBC estimated a 10 percent increase in loan applications, while OCBC said it saw a double-digit growth in commercial property loan applications since March last year.
“While the interest stems primarily from business owners looking to purchase for their own business use, we have also seen an increase in applications by SPVs, which are acquiring such properties for investment purposes,” said Willie Tham, Head of Commercial Banking at HSBC Singapore.
According to data from commercial brokerage firm Colliers International, mixed-use and commercial property accounted for S$2.26 billion (US$1.8 billion) or over 20 percent of the total property investment sales in the first quarter.
Global banking company HSBC estimated a 10 percent increase in loan applications, while OCBC said it saw a double-digit growth in commercial property loan applications since March last year.
“While the interest stems primarily from business owners looking to purchase for their own business use, we have also seen an increase in applications by SPVs, which are acquiring such properties for investment purposes,” said Willie Tham, Head of Commercial Banking at HSBC Singapore.
Market Street Car Park to be converted into office tower
CapitaCommercial Trust (CCT), along with CapitaLand, plans to redevelop Singapore’s oldest multi-storey carpark — Market Street Car Park (MSCP) — into a Grade A office tower for an estimated S$1.4 billion, or S$1,900 psf of net lettable area (NLA).
When completed in end-2014, CCT said the market can expect an “ultra-modern” Grade A office tower designed by renowned Japanese architect Toyo Ito. It will have a gross floor area (GFA) of approximately 887,000 sq ft, across an estimated 40-storey tower.
When completed in end-2014, CCT said the market can expect an “ultra-modern” Grade A office tower designed by renowned Japanese architect Toyo Ito. It will have a gross floor area (GFA) of approximately 887,000 sq ft, across an estimated 40-storey tower.
Singapore has 9th most expensive office space worldwide
Singapore has ranked ninth on the list of the world’s most expensive office locations as of December 2010, jumping from 15th place in June 2010 and 24th position in December 2009.
This is in line with the increasing rents for Grade A Central Business District (CBD) offices in the country, according to Colliers International’s Global Office Real Estate Review.
As such, Singapore has returned to the top 10 most expensive office locations globally, after being excluded from the top 20 list in 2009, when office rents were down and more competitive due to the global financial crisis.
This is in line with the increasing rents for Grade A Central Business District (CBD) offices in the country, according to Colliers International’s Global Office Real Estate Review.
As such, Singapore has returned to the top 10 most expensive office locations globally, after being excluded from the top 20 list in 2009, when office rents were down and more competitive due to the global financial crisis.
Office demand rises outside of CBD
Singapore’s Central Business District (CBD) office leasing market may have decelerated in the first quarter, but things have certainly been active for business park space outside the city, where rents are relatively lower.
Completed about a year ago along Pasir Panjang Road, Mapletree Business City (MBC) has clinched Nike, which has leased 100,000 sq ft, and Deutsche Bank, which is occupying around 120,000 sq ft. This means approximately 83 percent of MBC’s 1.73 million sq ft net lettable area (NLA) has already been taken up.
Completed about a year ago along Pasir Panjang Road, Mapletree Business City (MBC) has clinched Nike, which has leased 100,000 sq ft, and Deutsche Bank, which is occupying around 120,000 sq ft. This means approximately 83 percent of MBC’s 1.73 million sq ft net lettable area (NLA) has already been taken up.
Singapore office rental rates to rise
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.
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.
Calmer Leasing Market, Active Investment Market In First Quarter 2011
After the sharp upward market adjustments of 2010, we are seeing a more stable market emerging in Q1 2011 as occupiers digest the significant expansion space taken up last year. Although office rents continued to trend upwards, the pace of rental hike has moderated in line with the less frenetic pace of leasing.
Office rents continue to move up in Q1
However, pace of increase has slowed; prime rents up 3.6% q-o-q: CBRE
OFFICE rents in Singapore continued to trend upwards in the first quarter of 2011 but the pace of growth has moderated in line with the less frantic pace of leasing, said a new report.
Catching up: Rental growth for offices on the fringe of the CBD outpaced the rental growth in Raffles Place (above) in Q1, according to DTZ Research
Prime rents averaged $8.60 per square foot per month (psf pm) in the first three months of this year, reflecting a smaller increase of 3.6 per cent quarter-on-quarter compared with the 7.2 per cent climb in Q3 2010 and 12.2 per cent growth in Q4.
Prime rents averaged $8.30 psf pm in Q4 2010, said CB Richard Ellis (CBRE) in the report.
Grade A rents averaged $10.30 psf pm, which is an increase of 4 per cent quarter-on-quarter from the $9.90 psf pm in Q4 2010. On a quarterly basis, Grade A rents rose by 10 per cent in Q4 2010.
OFFICE rents in Singapore continued to trend upwards in the first quarter of 2011 but the pace of growth has moderated in line with the less frantic pace of leasing, said a new report.
Catching up: Rental growth for offices on the fringe of the CBD outpaced the rental growth in Raffles Place (above) in Q1, according to DTZ Research
Prime rents averaged $8.60 per square foot per month (psf pm) in the first three months of this year, reflecting a smaller increase of 3.6 per cent quarter-on-quarter compared with the 7.2 per cent climb in Q3 2010 and 12.2 per cent growth in Q4.
Prime rents averaged $8.30 psf pm in Q4 2010, said CB Richard Ellis (CBRE) in the report.
Grade A rents averaged $10.30 psf pm, which is an increase of 4 per cent quarter-on-quarter from the $9.90 psf pm in Q4 2010. On a quarterly basis, Grade A rents rose by 10 per cent in Q4 2010.
Singapore Office Property Market Remains Firm in its Recovery in 1Q2011
The latest office market research conducted by Colliers International revealed that the Singapore office property market continued its path to strong recovery in 1Q 2011 – underpinned by the burgeoning business confidence that spilled over from Singapore’s strong economic performance in 2010.
Average Monthly Gross Rents
Average monthly gross rents of Grade A office space in the Raffles Place/New Downtown micro-market chalked up a further growth of eight per cent quarter-on-quarter (QoQ) to reach S$9.72 per sq ft in 1Q 2011, even after recording two consecutive quarters of double-digit growth in rents.
Average Monthly Gross Rents
Average monthly gross rents of Grade A office space in the Raffles Place/New Downtown micro-market chalked up a further growth of eight per cent quarter-on-quarter (QoQ) to reach S$9.72 per sq ft in 1Q 2011, even after recording two consecutive quarters of double-digit growth in rents.
Grade A office capital value up 11.2% in Q1
Consultants expect average of $2,322 psf in Q1 to hit $2,600 by year-end
THE average capital value of Grade A office space in the Raffles Place/New Downtown area has increased about 11.2 per cent quarter on quarter to $2,322 per square foot in Q1 this year, according to Colliers International.
Prospects aglow: Ms Tay (next) expects capital values for Grade A office space, including the New Downtown (above), to move at a faster clip than rents this year as they've been lagging behind rental growth over the past year. Colliers forecasts a 15-20% increase in average rental value this year
The property consultancy predicts the full year increase will come in at about 25 per cent to about $2,600 psf.
THE average capital value of Grade A office space in the Raffles Place/New Downtown area has increased about 11.2 per cent quarter on quarter to $2,322 per square foot in Q1 this year, according to Colliers International.
Prospects aglow: Ms Tay (next) expects capital values for Grade A office space, including the New Downtown (above), to move at a faster clip than rents this year as they've been lagging behind rental growth over the past year. Colliers forecasts a 15-20% increase in average rental value this year
The property consultancy predicts the full year increase will come in at about 25 per cent to about $2,600 psf.
Continuing office market recovery a boon for commercial landlords
Commercial landlords in Singapore are benefiting from the ongoing recovery of prime Grade A office rents in recent months, according to DBS.
This recovery will continue to support the upward trajectory of capital values in Singapore’s office market, as well as continually benefit commercial landlords.
This recovery will continue to support the upward trajectory of capital values in Singapore’s office market, as well as continually benefit commercial landlords.
One Finlayson Green changes hands for S$227m
The building, which has a total net lettable area (NLA) of 89,950 sq ft, was sold through a private agreement between Singapore-based Lucrum Capital and a group of investors under a British Virgin Islands vehicle company.
“The buyer intends to keep the building for long-term investment,” said Ms. Stella Hoh, National Director and Head of Investments at Jones Lang LaSalle (JLL), which brokered the deal along with Colliers International (North Asia).
Lucrum Capital acquired the 19-storey building from UK-based property fund group Develica for S$145 million in March 2010 but after taking into account fees and other expenses, the final cost of the property was between S$155 million and S$157 million.
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