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.