Price, rental rises recorded for office, retail sectors

Singapore

COMMERCIAL properties offered some cheer against the backdrop of a bleak residential market, with office and retail segments registering price and rental increases last year.

Data from the Urban Redevelopment Authority (URA) released on Friday showed a 9.8 per cent climb in rents and a 4.5 per cent rise in prices for the office sector over the whole of 2014. For retail space, both rents and prices grew 0.9 per cent last year.

But these segments are likely to take on divergent paths this year - with the office segment still posting growth in rents and prices, albeit at a slower pace, and the retail rents and prices heading south, property consultants say.

Alice Tan, head of research and consultancy at Knight Frank, noted that businesses may become more cautious when exploring office space expansion and relocations with the aim to manage rental costs given the e…