Singapore office rents named among Asia’s steepest: CBRE report

Hong Kong topped the list.

Prime office rents continued to jump across the island in 2014. CBRE’s Global Prime Office Occupancy Costs report revealed that of the top 50 markets which saw the largest annual increases, Singapore was ranked fifth, recording a 16.5% increase in occupancy costs as at Q3 2014.

Prime office rents in the country are the region’s eighth most expensive. Globally, local office space are the 14th most expensive, with rents pegged at around $150.9 (US$112.9) per square feet per year as of the third quarter of 2014.

“The Singapore office sector performed within expectations in 2014 with rental levels advancing off low prevailing vacancy rates. Looking ahead, limited availability of office space will continue through 2015 with relief to occupiers only when the next wave of major new supply arrives in H2 2016. In these circumstances we anticipate further rental growth particularly in the early part of the year. The pace of rental growth may slacken later in 2015 and going into 2016 as the impact of sizeable future supply becomes apparent,” said Moray Armstrong, Executive Director, Office Services, CBRE.

Office spaces in Hong Kong Central are Asia’s most expensive, at $334.9 (US$250.61) per square feet per annum. London’s West End continued to command the highest rents, with occupancy costs pegged at $365.8 (US$273.6) per square feet per year.