Prices of office, retail space in Singapore both fell in Q3: URA

The prices of office space and retail space in the Republic both dipped slightly in the third quarter of 2015, the Urban Redevelopment Authority (URA) announced in a release on Friday (Oct 23).

The prices of office space fell by 0.1 per cent in the third quarter, reversing the increase of 0.3 per cent in the previous quarter. Rentals of office space also fell by 2.9 per cent, following on from a fall of 2.6 per cent in the second quarter.

This comes after analysts said that demand for Singapore office space could weaken.

There was a total supply of about 908,000 sq m gross floor area of office space in the pipeline at the end of the third quarter, said URA.

However, the amount of occupied office space increased by 15,000 sq m (nett) in the third quarter, adding to the 38,000 sq m (nett) increase in the previous quarter, URA said. This comes after the stock of office space decreased by 3,000 sq m (nett) in the third quarter, and as a result, the island-wide vacancy rate of office space fell to 9.6 per cent, down from 9.8 per cent at the end of the second quarter.

RETAIL SPACE PRICES ALSO DOWN

The prices of retail space in Singapore also fell, this time by 0.3 per cent in the third quarter, compared to the decrease of 0.5 per cent in the previous quarter. Rentals also fell, this time by 2.0 per cent, compared to the 0.5 per cent decrease in the second quarter.

As at the end of the third quarter, there was a total supply of 786,000 sq m gross floor area of retail space from projects in the pipleline.

The amount of occupied retail space also decreased in the third quarter. It fell by 13,000 sq m (nett) in the quarter just ended, compared to the zero net change in the previous quarter. The stock of retail space fell by 24,000 sq m (nett), compared to the 25,000 sq m (nett) increase in the previous quarter.

As a result, the island-wide vacancy rate of retail space fell to 7.0 per cent at the end of the third quarter.

Source : Channel NewsAsia – 23 Oct 2015

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