Singapore haunted by a dearth of new project launches in 3Q12

That is after brisk sales activities in 1H 2012 seen in developments.

According to Colliers International, transactional activities in the strata office market has generally toned down in 3Q 2012.

After brisk sales activities in 1H 2012 seen in developments, including PS100 in Tanjong Pagar, Oxley Tower along Robinson Road and EON SHenton at Shenton Way, there was a dearth of new project launches in the CBD in the third quarter.

However, given the low interest rate environment and continued limited supply of prime strata office space, fundamentals in the strata office market remains healthy. Recent anti-speculation measures implemented in the residential and industrial sectors have also diverted some investors’ interest to the office market.

Therefore, supported by investors’ confidence in this market segment, the average capital value of Grade A office space in the Raffles Place/New Downtown micro-market held firm at S$2,447 per sq ft in 3Q 2012, after easing by 0.5 per cent in the previous quarter.