The Business Times
business-time-50
THE LEVEL GROUND
·
SUBSCRIBERS

Skinny yields on prime office buildings may not be sustainable

google-preferred-sourceAdd BT as a preferred source
Leslie Yee

Leslie Yee

Published Mon, Feb 27, 2023 · 04:10 PM
    • While premier Singapore office buildings are still relevant, yields on such buildings may need to expand to reflect higher interest rates.
    • While premier Singapore office buildings are still relevant, yields on such buildings may need to expand to reflect higher interest rates. PHOTO: BT FILE

    SINGAPORE’S office property market enjoyed a strong run in 2022. But capital values of office buildings here could come under pressure because of high interest rates.

    The Urban Redevelopment Authority’s central region office rental index rose 11.7 per cent in 2022, after rising 1.9 per cent in 2021.

    The valuation of the Singapore office assets of leading office landlord Keppel Real Estate Investment Trust (Keppel Reit) rose 2.3 per cent between end-June 2022 and end-December 2022 to S$7.2 billion.

    Commercial propertySingapore commercial propertySingapore propertyKeppel ReitSuntec ReitCapitaLand Integrated Commercial TrustThe Level GroundSpotlight

    TRENDING NOW

    Zhang Yiming’s net worth climbs to US$92.8 billion, cementing his position as China’s richest person, according to the Bloomberg Billionaires Index.

    TikTok billionaire overtakes Mukesh Ambani as Asia’s second-richest person

    The lack of operational clarity in the shake-up of Indonesia’s commodities exports is showing up in trading activity, with fresh fruit bunch prices declining in Sumatra and Kalimantan.

    Indonesia’s commodity export shake-up sparks industry alarm, investor jitters

    The Orchard Boulevard plot is estimated to yield around 110 new private homes.

    Orchard plot, Jurong East EC, Raffles Town Club site among 10 new housing parcels in H2 GLS plan

    The departure of food manufacturing operations from Singapore may not necessarily be reason for concern.

    Yeo’s, Tiger Beer and now Gardenia – flight of food manufacturing from Singapore might be just as planned

    Latest T-bills Treasury Bills Results & Interest NewsLatest SSB Singapore Savings Bonds NewsLatest COE Certificate of Entitlement News
    Latest Johor-Singapore SEZ NewsLatest BTO Build To Order & Sales of Balance NewsLatest STI Straits Times Index NewsLatest SGX Dividends, Share Price NewsLatest Bonds Market NewsLatest Singapore Stocks To Buy NewsLatest Singapore Economy News
    View More