Singapore prime office values dip in Q2

Values slid to $3,050 psf from $3,100 psf previously.

Capital values of prime office space in the central business district (CBD) slipped in the second quarter, according to Colliers.

The average capital values of core CBD premium and grade A office space went down 1.6% to $3,050 per square foot in the second quarter from $3,100 psf in the first quarter.

Net yields grew slightly by 8 basis points to 3.59% in the second quarter. 

Among the big-ticket office deals during the quarter, Colliers billed the $775m sale of Mapletree Anson in May as an opportunistic play with a unit price equivalent to $2,352 psf. This runs in contrast to the $147m sale of 30 Prinsep Street whose price tag translates to $3,000 psf.

Colliers said these two deals reinforce the strength of the entire prime office market with private wealth still driving demand for premium workspace. The property agency expects the segment to stay resilient in the long run.

“In the longer term, office capital values are expected to remain resilient and well supported by the ample liquidity in the market as well as the impending easing of interest rates.