CBD Grade A office rental growth highest since 2010.
Grade A offices in the Central Business District (CBD) posted the highest annual rental growth since 2010 due to tightening vacancies, according to real estate services firm Colliers International.
The annual growth for last year was 14.9 per cent, compared with 22 per cent in 2010 after the global financial crisis, said Colliers in a statement yesterday.
CBD Grade A office rental growth was 2.3 per cent in 2017.
Demand is expected to remain strong, especially amid the continued expansion of the technology sector and flexible workspaces.
The Shenton Way/Tanjong Pagar and Beach Road markets saw the largest rental increases last year, due to new developments such as Guoco Tower near Maxwell Road and Duo near Bugis MRT station.
In the fourth quarter of last year, average CBD Grade A rent in Beach Road rose 18.6 per cent year on year to $8.52 per sq ft per month (psf pm), while rent in Shenton Way/ Tanjong Pagar increased 18.4 per cent year on year to $9.53 psf pm.
This is against the backdrop of an overall rise in prime office rents.
Credit to Derek Wong, Adapted fro The Straits Time 14 February 2019