SUBSCRIBERS

Forecasts for CBD office rents clipped

After tepid Q1 growth, property consultants expect rents to stagnate or ease for the rest of 2015; next year could bring downward pressure

Kalpana Rashiwala

Published Wed, May 6, 2015 · 09:50 PM

Singapore property

Singapore

SENTIMENT in the Singapore office market, hailed as the bright spot of the local property market for the most part of last year, has taken a hit.

Weaker-than-anticipated leasing demand for office space in the Central Business District (CBD) since late last year was mirrored in weak rental growth in the first quarter; with no significant pick-up in demand expected in the near term amid tepid economic growth and some foreign banks tipped to shed office space, several property consultants are clipping their forecasts for CBD Grade A office rent growth this year.

The trend is being exacerbated by a div…