Office space prices up 1.3% in Q1

Rents also grew by 2.6%.

The prices of office space jumped by 1.3% the first quarter of 2018, softer than the 2.7% increase in the previous quarter, the Urban Redevelopment Authority (URA) revealed. The rentals of office space rose at the same pace as the previous quarter by 2.6%.

There was a total supply of about 791,000 sqm gross floor area GFA of office space in the pipeline, 32.5% higher than the 597,000 sqm GFA last quarter.

URA added that the amount of occupied office space increased by 14,000 sqm (nett), softer than the increase of 55,000 sqm (nett) in the previous quarter. Meanwhile, the stock of office space increased by 11,000 sqm (nett), which is better than the decrease of 4,000 sqm (nett) in the previous quarter.

As a result, the island-wide vacancy rate of office space dropped to 12.5%, from 12.6% at the end of the previous quarter.