Limited supply for mid-sized units pushed leasing costs up.
Singapore’s prime office rents surged 23.7% YoY to an average of US$81.2 sqm/month in Q1, according to property consultant Knight Frank, The latest reading represents the highest YoY increase brought about by limited supply for mid-sized units in Raffles Place and Marina Bay and translates to a gross effective rent of US$93.5 sqm/month.
On a quarterly basis, prime office rents grew by 1.5% from Q4 2018 and the momentum is expected to be maintained with prime office rents set to grow further over the next 12 months.
However, Singapore ranks alongside Bangkok and Melbourne where rental growth is slowing unlike Brisbane, Bengaluru, Mumbai, Guangzhou and Perth where rental growth is picking up.
The prime office rental index in APAC fell 0.4% QoQ to a reading of 142.6 in Q1, according to Knight Frank, but grew 6.2% YoY. Of the 20 cities tracked by the index, 15 recorded either stable or increased rents, which is two less than the 17 reported in the previous quarter.
Jakarta saw the biggest drop in prime office rents at 16% YoY in Q1 2019, extending the downward trend since Q4 2014.
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