Redevelopment may head off office market blues

Singapore

SINGAPORE office rents are easing amid a drop in demand as businesses go into cash-conservation mode amid a recession, prompting some to downsize their headcount.

However the limited completion of new CBD Grade A offices this year and next should mitigate the rental drop. Another silver lining may turn up in timely fashion - the redevelopment of ageing office blocks in the central business district (CBD), spurred by an incentive scheme unveiled by the Urban Redevelopment Authority last year to rejuvenate the old CBD.