Singapore high-end office rents will continue to drop in 2013: Colliers

But see why this could be a good thing.

According to Colliers, Singapore’s CBD Class A office rents are expected to continue decline through 2013, but notes that the lowered office rents will improve the market’s competitive edge as a regional hub for business.

The prediction came as Colliers recapped the 2012 performance of Singapore Class A office rents, which fell in 2012 as the global economic environment weighed down the market’s leasing activity.

Colliers said that a glut of supply could be entering the market soon, which will help drive down prices. "Seeing the steady lineup of new office buildings completed over the next four years, a substantial amount of secondary space could be released to the market upon lease expiration as existing tenants move to new premises," it said.

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