Singapore tops Asia in Office rental Gains in the last Quarter

In local currency terms, Singapore continued to see the strongest quarterly rental growth of 4.6 per cent compared to the preceding quarter.

The average rental for a Grade A office space was US$828 per square metre (psm) per year, making the city-state the third most expensive after Hong Kong Central at US$1,493 psm per year and Beijing’s Central Business District at US$996 psm per year.

Small-space occupiers, particularly those from the e-commerce and fast-moving consumer goods (FMCG) segment, continued to dominate the Singapore market.

The city-state’s growth was closely followed by Auckland’s 4.4 per cent and Beijing’s 2.5 per cent growth, as vacancy edged lower in all these locations.

Growth remained steady at 2 per cent in Tokyo, while small rental increases of 1-1.5 per cent were seen in Hong Kong, Shanghai and Manila.

Rental growth also far exceeded capital value gain in the Singapore CBD office market, which saw a quarterly 0.5 per cent growth in capital value in local currency terms. Compared to Q2 last year, the gain in capital value was 2.1 per cent.

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