Chart of the Day: Take a look at the rising average capital values for office property

Thanks to stronger rents.

Steady demand and improving rents in the office leasing market have contributed to the growing interest of institutional players, opportunistic private-equity investors, wealthy individuals and family offices; which in turn, provided support for prices.

According to a report by Colliers International, the strengthening office rents have also contributed to improved valuation of office assets held by public-listed Real Estate Investment Trusts (REITs), as well as private office assets.

Consequently, the average capital value of Premium Grade office space in the Raffles Place/New Downtown micro-market rose by 1.5 per cent from S$2,779 per sq ft in 4Q 2014 to S$2,821 per sq ft in 1Q 2015. Grade A office space in the same micro-market moderately increased by 1.7 per cent QoQ to S$2,532 per sq ft by March 2015.