Expect continued office price and rental increases: DTZ

Forecast for the commercial and industrial markets was based on the projected economic growth of 4-6%. According to DTZ’s Money into Property report, the Singapore office market is ranked among the top five in the HOT category in Asia Pacific.

Chua Chor Hoon, Head of South East Asia Research, noted: “Singapore's commercial and industrial markets remain in the HOT category, similar to the Q4 2010 findings, as we expect continued price and rental increases based on the projected economic growth of 4-6% in 2011 and over the next few years.”

Capital values are said to be expected to re-price at a faster rate compared to 2010 with growing interest from institutional investors.

David Green-Morgan, Head of Asia Pacific Research, said: “Some of the core developed markets in Asia Pacific have re-priced over the past 12 months resulting in a reduction in the number of HOT markets. However, numerous attractive investment opportunities still exist across the region and in all sectors. Developing markets dominate the WARM and HOT categories. However, there are still attractive opportunities in developed markets such as Melbourne and Singapore offices."

He explained that these opportunities will be driven by strong levels of office take up, which will continue to encourage rental growth. They expect Asia Pacific’s momentum to continue on the back of strong economic growth, lack of legacy debt issues and strong investor interest.