Prices of office space inch up 2.2% in Q3

But rental prices slipped 4.5%.

Prices of office spaces in Singapore jumped 0.2% in Q3, but rentals slipped 4.5% after remaining unchanged in the previous quarter, according to an URA report.

Price index rose from 126.9 in Q2 to 127.2 in Q3. On the other hand, rental index to 161.1 in Q3 from Q2’s 168.7.

At the end of Q3, there was a total supply of about 767,000 sq m GFA of office space in the pipeline, versus the 668,000 sq m GFA of office space in Q2.

In addition, 174,908 sq m of office space were completed from Q1 to Q3.

The amount of occupied office space decreased 19,000 sq m (nett) in Q3, whilst the stock of office space decreased by 33,000 sq m (nett). As a result, the island-wide vacancy rate of office space declined to 12% by the end of the quarter.