Finally, Singapore's office leasing market breaks free from plummeting down

Rents raised 0.8% this quarter.

According to Colliers International, the latest URA’s office rental index confirmed the firm's research findings that Singapore’s office leasing market has stepped out of a downturn. 

Overall office rental recovery gained traction slightly in 3Q 2013, rising 0.8% QoQ as compared to the 0.2% QoQ climb three months earlier.

Here's more from Colliers International:

Strengthening rents comes on the back of improving net absorption, which rose from 205,000 sq ft in 2Q 2013 to 495,000 sq ft in 3Q 2013, amid a recovery in the global economic environment.

However, due to the net addition of some 1.3 million sq ft of new office supply in the same period from the completion of Asia Square Tower 2, The Metropolis Tower 1 and Nexus @ One-North, the overall islandwide office space occupancy rate fell to a 12-month low of 90.4% as of the end September 2013.

Colliers International’s research also showed that office rents have embarked on a firm recovery path. In particular, the rate of increase for average monthly gross rents for Premium Grade office space in the Raffles Place/New Downtown micro-market accelerated to 3.3% in 3Q 2013 from the 2.0% QoQ rise recorded in the preceding quarter.

This brought the average monthly gross rent for Premium Grade office space in the micro-market to $9.92 per sq ft by the end of September 2013.