Chart of the Day: Find out how much office space value inched up before year-end

Micro market hit $2,395 psf.

According to Colliers International, the upturn in office rents lifted the yields of office properties and, in turn, provided property owners with more bargaining power to negotiate for a higher selling price.

The average capital value of Premium Grade and Grade A office space in the Raffles Place/New Downtown micro-market inched up by 1 per cent and 0.2 per cent in 4Q 2013 to reach S$2,667 per sq ft and S$2,395 per sq ft, respectively.

Here's more from Colliers International:

This is the first time since 4Q 2011 that the average capital values of Premium Grade and Grade A office space in the micro-market have recorded positive growth.

Sales activity for strata-titled office units softened in 4Q 2013, due to higher price expectations and the more stringent loan requirements arising from the Total Debt Servicing Ratio. The last quarter of the year is also a traditional lull period for corporate transactional activities, as key decision makers go for vacations amid the festive season.

Due to the lack of new launches of strata-titled office projects in 4Q 2013, the sales market was dominated by transactions of completed strata-titled office units in mature developments such as International Plaza and Springleaf Tower.

Strategically-located completed strata-titled office developments also continued to attract the interest of corporate end-users looking to purchase their own office premises to avoid rising occupation cost.