Thursday, October 15, 2009

DTZ expects office rentals to return to positive growth in 2010

Property consultancy DTZ has upgraded its outlook for the office property sector.

It now expects office rentals to return to positive growth next year as the improving economic outlook feeds through.

But it said the outlook for 2009 remains firmly negative.

Year to date, office rentals throughout Asia Pacific have fallen by an average of over 10 per cent.

DTZ said the latest quarter on quarter growth was down around 2.5 per cent.

It expects the end of this year to be the bottom of the market as most cities are expecting to see yields stabilise in 2010.

The property consultancy said it doesn’t expect to see significant growth in Singapore’s office sector until 2011.

But it said growth may occur earlier if the positive sentiment amongst domestic and multinational occupiers persists.

Source: Channel News Asia, 15 Oct 2009

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