Chart of the Day: How Marina One's completion will impact office supply

Pre-commitment of major buildings has taken off pressures.

A report by DBS Group Research said fall-off in office supply is due to completion of Marina One in 2017. “Pre-commitment of major buildings, Marina One (60%), Duo (estimated 45%), and Guoco Tower (90% taken up) has taken pressures off the new supply,” it noted.

Here’s more from DBS:

With consensus expectations for Singapore’s GDP growth to be revised upwards (according to the latest Monetary Authority of Singapore Survey, market economists expect GDP growth of 2.3% versus 1.5% previously), we recommend that investors position themselves in more cyclical sectors, namely the office and industrial REITs, specifically the business parks and hi-tech segments.

In addition, with the supply for both sectors easing from next year, we believe the prospects of a recovery in spot rents next year are increasing, which is supportive of our positive stance.