Chart of the Day: Office rents fell in Q2

Grade B offices at Shenton Way/Robinson Road/Tanjong Pagar led the decline.

This chart from EDMUND TIE showed that all the various subzones in the office sector posted QoQ declines in monthly average rental rates in Q2.

Within the CBD, Grade B offices at Shenton Way/Robinson Road/Tanjong Pagar showed the greatest rental contraction of 2% QoQ. Older office developments in this subzone did not hold up so well as tenants relocated to more efficient and better quality buildings.

Most companies were affected by the preventive measures taken to contain COVID-19 pandemic, the report noted. Moving forward, the office leasing market is expected to face further pressure amidst the new normal.

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