Office space prices dip by 0.1% in 3Q

Rentals are falling fast.

Office rents are in a freefall, as rentals fell by 2.9% in the 3rd quarter, compared to the decline of 2.6% in 2Q.

According to the Urban Redevelopment Authority, prices of office space decreased by 0.1% compared to the increase of 0.3%.

“As at the end of 3rd Quarter 2015, there was a total supply of about 908,000 sq m GFA of office space in the pipeline,” said the URA.

Meanwhile, the amount of office space increased by 15,000 sqm in 3Q, compared to the 38,000 sq m increase in the previous quarter.

“The stock of office space decreased by 3,000 sq m (nett) in 3rd Quarter 2015, compared to the increase of 8,000 sq m (nett) in the previous quarter. As a result, the island-wide vacancy rate of office space at the end of 3rd Quarter 2015 fell to 9.6%, from 9.8% at the end of 2nd Quarter 2015,” the URA said.