Is Singapore's high-rise office rents bowing with slow demand?

Annual rents fell 7%.

The ongoing supply glut in office spaces has taken its toll on rent prices, with landlords paying the penalty for a slowing economy.

According to a 23-city index compiled by Knight Frank LLP, annual rents on the upper floors of Singapore’s skyscrapers fell 7% to about US$775 ($1,056) a square metre in the first six months.

“There’s a classic imbalance in the Singapore market,” said Will Beardmore-Gray, head of Knight Frank’s tenant representation and agency business. “They had relatively high supply and this has been exacerbated by a poor-performing economy and over development.”

Meanwhile, vacancy rate in the city-state went up 9% in the second quarter.

Read the full report here.