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OFFICE and retail space tucked in price and rental increases in the fourth quarter of last year, with the office segment being a particularly bright spot in the private property market amid tight supply in the near term.
Latest quarterly data from the Urban Redevelopment Authority (URA) shows prices of office space rising 2.4 per cent quarter-on-quarter in the fourth quarter of 2014, up from a 1.6 per cent increase in the preceding quarter. For the full year, prices of office space gained 4.5 per cent.
Office rents also remained on the uptrend, albeit growing at a more moderate 1.7 per cent during the fourth quarter compared to 2.6 per cent in the third quarter. This marked a sturdy 9.8 per cent climb in office rents for the full year.
But vacancy rate of office space islandwide edged up to 10.2 per cent in the fourth quarter from 8.4 per cent in the third quarter, due to a net increase of 145,000 sq m in office stock in the fourth quarter, after a net decrease of 47,000 sq m in office stock in the previous quarter.
For retail space, prices recovered with a 1.5 per cent rise in the fourth quarter after a 0.2 per cent decline in the third quarter.
Retail rents also put on 0.5 per cent of increase in the fourth quarter, after edging up 0.1 per cent in the third quarter. For the full year, both prices and rents of retail space rose by 0.9 per cent.
Island-wide vacancy rate of retail space fell to 5.8 per cent at the end of the fourth quarter, from 6.5 per cent at the end of the third quarter, as the net increase in retail space occupied exceeded the net increase in retail stock, URA said.
URA has also released more detailed rental data for retail and office space to help businesses better track market rental rates and improve market transparency.