Prime office rents: No reprieve in sight for 2017
Analysts expect rental rates to drop by up to 10 per cent next year but capital values may still hold up
Singapore
THE "flight-to-new projects" - a term used by the office leasing sector to describe the trend of tenants swarming into swanky new office projects - is set to continue next year as companies capitalise on softening rents to upgrade their working spaces.
This merry-go-round, however, is causing pain to landlords of older buildings in the Central Business District (CBD). Based on analysts' projections, overall prime CBD office rents may fall by up to 10 per cent next year.
But capital values may still hold up amid keen interest for office assets from private capital and the infrequency in office transactions in the tightly held sector.
Said Cushman & Wakefield research director Christine Li: "If the current global macroeconomic and local micro-market dynamics continue to prevail, average office rentals are expected to soften in the short term due to supply pressures with DUO Tower, 5 Shenton Way (UIC Building) and M…
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Property
Hong Kong developer weighs stake sale in London office skyscraper project
How Hudson Yards went from ghost town to office success story
S$16.5 million deal at The Ritz-Carlton Residences tops Q1 gainers; seller reaps S$4.9 million profit
Forrest Li’s wife buys Gallop Road bungalow next to the one he has redeveloped
Chinese restaurants spur Hong Kong’s retail property recovery
Asking rents down as demand slows and rental listings surge