Defying gravity: Singapore prime office rent prices spike 6.8% in 1Q14

Asia dominates most expensive locations list.

The prices keep going up, and they’re not likely to come down in the near future. Companies looking for office space in the country should get ready to fork out more cash. 

Singapore’s prime office rental prices spiked 6.8% in 1Q14, according to CBRE’s Global Prime Office Occupancy Costs study.

The report revealed that Singapore’s prime office rental prices averaged US$104.95 per square feet per annum in the first half of the year, compared to just US$98.5 in 3Q13.

Singapore now ranks as the 18th most expensive location for prime office rentals, up from rank 20 in 3Q13.

In spite of the rise, Singapore remains much cheaper compared to its regional counterparts. Hong Kong CBD remains at rank 2, with Beijing’s Finance Street and Beijing’s CBD at 3rd and 4th place, respectively.

According to CBRE, “Almost by definition, prime office space is concentrated in the most populated and business orientated markets across the globe. This has been proven time and again over the 14-year history of this report, as the top 10 most expensive markets have been fairly constant. However, several major Asian markets—such as Shanghai (Pudong and Puxi)—have inched up the ranking with each survey, as have Singapore and several Indian markets. If this secular trend continues, it may not be too long before all the top 10 markets are in Asia.”