Chart of the Day: This chart is proof why rents will be rising to 0.8% in 4Q13

Will landlords still be favored?

According to Savills, although office sales activity was tepid, prices remained resilient. For example, some floors in Springleaf Tower on Anson Road were transacted for S$2,220 per sq ft to S$2,320 per sq ft in the reviewed quarter.

Average capital values of CBD Grade A offices tracked by Savills remained unchanged at S$2,750 per sq ft in Q3/2013.

Here's more from Savills:

Supported by a gradually improving global economic outlook, together with the limited supply of new Grade A office buildings, demand for CBD offices is expected to remain healthy.

Rents are expected to improve further by 0.3% to 0.8% in the last quarter of 2013. The leasing market will continue to favour landlords due to the improving occupancy rates of CBD Grade A buildings, currently hovering above 95%.

In the strata office market, the positive buying momentum from individual investors was slowed somewhat by the TDSR. On the other hand, investment demand for office buildings from equity funds and developers is likely to continue on the back of the tight supply, rising rental rates and low interest rates.

In line with this, capital values of Grade A office buildings are expected to trend moderately upwards in the next few quarters. 

Join Singapore Business Review community
A NOTE FROM SINGAPORE BUSINESS REVIEW

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.


The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.


So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.