Singapore office rents dropped to the lowest in approximately seven years as vacancy rates rise to the optimum in six years following excessive supply of space.
The figure indicated that a measure of office rents dropped 1.1% to 155.6% in the second quarter, which is the lowest since September 2010. However, the vacancy rate increased 0.8% to 12.4%, which is the highest figure since June 2011.
Some analysts see a sign of recovery in Singapore’s office market despite the drop in rents.
A group of investors from Malaysia bided the sum of S$2.6 billion (1.9 billion USD) in 2016 for an uncommon plot in Marina Bay District. In the same vein, Qatar’s Sovereign Wealth Fund bought an office complex from BlackRock Inc. at the best cost of S$3.4 billion in 2016. Likewise, CapitaLand Commercial Trust sold a 50% share in One George Street to an insurance company by name FWD Group at the cost of S$591.6 million.
There has been competitive offers and the rental market dropping to the lowest level in recent Singapore Office Land sales, according to an expert on 19 July.
However, residential rents dropped 0.2% in the second quarter which ended on 30 June. The home prices for Singapore dropped 0.1% in the quarter under review, while the figure showed less than 0.3% drop in preliminary data released to the public on 3 July.