The rental gap between the two areas of Raffles Place and Marina Bay was 4 % in the third quarter, the smallest differential since 2011, according to Cushman & Wakefield.
Grade-A office rents in Marina Bay dropped 19 % in the first three quarters of 2015 to S$10.70 per square foot per month (psf pm); office rents in Raffles Place fell by only 0.7 % to S$10.31 psf pm.
The rental resilience of Raffles Place is attributed to higher occupancies amid tenant loyalty and positive net absorption of office space, as well as a lack of Grade-A office supply within Raffles Place.
Office occupancy rate in Raffles Place hit 97.1 % in Q3 from 96.5 per cent% in the Q2, while net absorption for Grade-A offices in Raffles Place totalled 110,000 sq ft so far in 2015. There is also a more diversified tenant profile in Raffles Place, where banking, insurance and financial services occupy some 44 per cent of floor area compared to 64 per cent in Marina Bay.
Homes by the Bay 