Office space prices up 3.6% in 2Q11

And the vacancy rate of office space increased to 12.5%.

The Urban Redevelopment Authority released today the real estate statistics for 2nd Quarter 2011.

OFFICE SPACE

Prices and Rentals
The rate of increase in rentals and prices has reduced. Rentals for office space, based on leases which had commenced, increased by 1.5% in 2nd Quarter 2011, lower than the increase of 5.4% in 1st Quarter 2011. Prices of office space increased by 3.6% in 2nd Quarter 2011, lower than the 4.9% increase in the previous quarter.

Supply in the Pipeline
As at the end of 2nd Quarter 2011, there was a total supply of about 876,000 sq m GFA of office space in the pipeline.

More supply of office space will also come from the GLS sites which were recently awarded or released for sale by the Government in 2011. This includes the commercial sites at Robinson Road / Cecil Street and Paya Lebar. In addition, more supply of commercial space is also expected from the development of the 6 plots of land at Marina Bay and Ophir Road / Rochor Road to be jointly developed by M+S Pte Ltd.

Stock and Vacancy
The amount of occupied office space increased by 62,000 sq m in 2nd Quarter 2011, compared to the increase of 50,000 sq m in the previous quarter. On the other hand, the stock of office space increased by 105,000 sq m in 2nd Quarter 2011. The island-wide vacancy rate of office space as at end of 2nd Quarter 2011 increased to 12.5%, from 12.1% as at the end of 1st Quarter 2011.