Friday, January 23, 2009

Office rents dip 6.5% in Q4: URA

Rentals of office space fell 6.5 per cent in Q4 2008, data released by the Urban Redevelopment Authority (URA) on Friday showed.

But for the whole of 2008, rents for office properties still rose by 5.8 per cent, lower than the 56.1 per cent increase in 2007.

The median rental for ‘Category 1′ office space, based on leases which had commenced, was S$13.00 per square foot per month (psf pm) in fourth quarter of 2008, lower than the median rental of S$13.57 psf pm in third quarter 2008.

Category 1 office space refers to office space in buildings located in core business areas in Downtown Core and Orchard Planning Area which are relatively modern or recently refurbished, command relatively high rentals and have large floor plate size and gross floor area.

URA’s data also showed that prices of office properties fell 4.9 per cent in Q4. For the whole of 2008, prices of office properties fell 7.0 per cent.

As at the end of Q4 2008, there was a total supply of about 1.39 million sq m gross floor area of office space in the pipeline, URA said.

Source: Business Times - 23 Jan 2009

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