Singapore office rents down 2.6% in Q2: URA

PRICES of office space in Singapore rose 0.3 per cent quarter on quarter in the second quarter of this year, compared to a drop of 0.1 per cent in Q1.

The Urban Redevelopment Authority (URA) said on Friday its office rental index eased 2.6 per cent in Q2, compared to a rise of 0.6 per cent in Q1.

The amount of occupied office space increased by 38,000 square metres (nett) in Q2, double Q1's increase of 19,000 sq m.

The stock of office space rose 8,000 sq m in Q2, a smaller increase than Q1's 22,000 sq m. This resulted in the islandwide vacancy rate of office space easing to 9.8 per cent at end-Q2 from 10.2 per cent at end-Q1.

URA also said prices of retail space fell 0.5 per cent in Q2, after remaining unchanged in Q1. Retail rents dropped 0.5 per cent in Q2 after easing 0.3 per cent in Q1.

The vacancy rate of retail space rose to 7.2 per cent at end-Q2 from 6.8 per cent at end-Q1.