Chart of the Day: Singapore is Asia-Pac's 3rd costliest office hub

Annual gross rent is USD79.9 per sq ft.

According to Colliers International, Singapore remained the third most expensive office location among 28 cities in the Asia-Pacific region in 2Q 2013, behind Hong Kong and Tokyo which occupied the top two spots, respectively.

In US dollar terms, the annual gross rent for CBD Premium and Grade A office space in Singapore fell 1.6% QoQ in 2Q 2013 to US$79.90 per sq ft – the lowest level in 2½ years. In contrast, overall Grade A office rents in Tokyo eased by a lesser 1.2% QoQ to US$92.13 per sq ft per annum, while those in Hong Kong inched up 0.9% QoQ to US$113.85 per sq ft per annum.

Nonetheless, in local currency terms, average monthly gross rents for Singapore’s CBD Premium and Grade A office space had bottomed out in 2Q 2013, improving marginally by 0.1% QoQ to S$8.42 per sq ft as of end-June 2013. This is the first time Singapore office rents recorded a positive growth since the market headed south in 4Q 2011.

On the back of improving market sentiments and demand for efficient floor layouts, rents for Premium and Grade A office space in the CBD are expected to continue to strengthen for the rest of 2013.