Chart of the Day: Office rentals reached inflection point in 4Q11

Not time to rejoice yet though as there are no sufficient signs to indicate that the sector is bottoming out.

According to OCBC Investment Research, it is too early to call a bottom for the domestic office sector given macroeconomic uncertainties and an ample office pipeline of 4.2m sqft NLA in FY12-13.

“Over 2H11, we saw office rents peak as Grade A rents declined 0.5% QoQ in 4Q11 while Grade B rents fell by 0.4%,” it said.

OCBC said that the optimism on office rentals are driving share prices of listed property developers like Keppel Land but cautioned of persistent downside risks should headline rentals and capital values continue to decline.


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Vibrant Group wins suit against Blackgold Australia
The group shall be paid damages and fees by Blackgold Australia’s ex-CEO and ex-chairman.
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Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.
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Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley