During the third term of 2013, office rent prices in the Singapore Central Business District dropped. This is the first time rents have fallen since 2013, said two sources with regards to Parc Riviera recently.
The average gross rent (pcm) in Marina Bay dropped by 5.5% from the second term of the year. It fell to $13 per square ft. The rents in Raffles Place also dropped by 3.4% to $10.45 psf, according to a property specialist.
The trend continued on the edges of the city, in areas like Beach Road, Anson Road, and Orchard Road – rents fell in these areas by 2.1% to $8.25 psf.
West Coast Vale Condo
Now, renting rewards have been boosted by landlords looking to keep old tenants and draw in new ones – more incentives to lease have been offered for EL Development West Coast Vale Condo, in a bid to maintain and enhance space take up.
For example, lengthier fitting out durations, rent breaks, and rental refunds are all being offered as a way of reducing net effective prices for tenants.
The drop in office rents has also been seen outside of the city, says another recent report.
Suburban Grade A rents, which shrank by 0.9% within the second term, dropped by another 0.3%. They stood at an average $5.75 psf during the last term of the year.
West Coast EL Development Condo
The corporate sector had predicted a dip in profits during the fourth term for EL Development West Coast Development Condo, particularly in terms of the pessimistic economic picture. According to a source, most expansion schemes have been delayed.Key leasing agreements within the third term were, mostly, fight-to-quality relocations to young completions.
Healthcare technology and medical supplies giant, Covidien, closed a deal on approximately 50,000sq ft., located Mapletree Business City II. The project will be finished sometime next year.
The Commonwealth Bank of Australia now plans to move from Millennia Tower to the only just finished South Beach area. The Marubeni Singapore and Nordea Bank enterprises will relocate from the Hong Leong Building and Springleaf Tower to CapitaGreen.
West Coast Vale EL Development Parc Riviera
In spite of these developments, the leasing market is still vulnerable and sluggish, as conventional demand motivators (much like the motivators for the banking and finance sectors) continue to shrink and consolidate.
There were job losses unveiled at the Standard Chartered Bank and Deutsche Bank last month.
Plus, total office use within the new west caost vale condo el development dropped by 0.9% from the second term. This drip leaves it at 95% and there have been similar drops in the Shenton Way and Marina Bay areas.
There has been positive news for Raffles Place; its usage levels have increased slightly (by 0.4%) to just under 97%.
EL Development New Launch West Coast
It is predicted that West Coast Vale Condo rents will feel the strain next year too. With approximately 2.6 million sq ft of land due to be finished as part of the CDB (encompassing around 1.9 million sq ft at Marina One alone), developers may face tough challenges.
The CBD suburb ventures DUO Tower and Guoco Tower, which are expected to contain around 1.5 million sq ft overall, are also due to be finished within the next year.
In addition, 1.1 million 2q ft of CBD floor space will be finished from 2017-2018. This will incorporate the SBF Centre and Frasers Tower.
Right now, the average pipeline supply within the CBD, from 2015 to 2019 is expected to stay below the average yearly supply in the same region, from 2011 to 2014.
According to a source, rents are likely to return to normal levels in 2019, as the surplus supply is utilised.