URA office rental index slips 1.1 % q-o-q in Q2; vacancy rises to 12.4% at end-June

THE Urban Redevelopment Authority's office rental index fell 1.1 per cent in the second quarter of 2017 over the preceding quarter, a smaller decline than the 3.4 per cent drop in Q1 this year.

URA's office price index shed 1.4 per cent in Q2, again a smaller fall than the 4 per cent drop in Q1 2017.

The islandwide vacancy rate of office space rose to 12.4 per cent at end-Q2 this year from 11.6 per cent at end-Q1 2017.

The stock of office space increased by 76,000 square metres (nett) in Q2 2017, compared with the increase of 31,000 sq m (nett) in the previous quarter.

On the demand side, the amount of occupied office space rose 1,000 sq m (nett) in Q2 2017, after shrinking 6,000 sq m in the previous quarter.

URA said that as at the end of Q2 2017, there was a total supply of about 719,000 sq m gross floor area (GFA) of office space in the pipeline, lower than the 826,000 sq m GFA as at end-Q1 2017.