Office rents in the CBD pegged to improve by 0.3%-0.8%

But will demand remain robust?

According to Savills, supported by a gradually improving global economic outlook, together with the limited supply of new Grade A office buildings, demand for CBD offices is expected to remain healthy. Rents are expected to improve further by 0.3% to 0.8% in the last quarter of 2013.

Here's more from Savills:

The leasing market will continue to favour landlords due to the improving occupancy rates of CBD Grade A buildings, currently hovering above 95%.

In the strata office market, the positive buying momentum from individual investors was slowed somewhat by the TDSR.

On the other hand, investment demand for office buildings from equity funds and developers is likely to continue on the back of the tight supply, rising rental rates and low interest rates. In line with this, capital values of Grade A office buildings are expected to trend moderately upwards in the next few quarters