COTD: Office vacancy rate up 11.0% QoQ in Q3

Office space occupancy declined by 3,000 sq m (nett) in Q3.

In Q3, office space occupancy increased by 17,000 sq m (nett), compared with a decrease of 20,000 sq m (nett) in Q2, the Urban Redevelopment Authority (URA) reported.

Meanwhile, the stock of office space rose by 36,000 sq m (nett), which increased the island-wide vacancy rate to 11.0% quarter-on-quarter (QoQ), from 10.8% in Q2.

As of the end of Q3, there was a total supply of about 903,000 sq m GFA of office space in the pipeline, compared with the 1,011,000 sq m GFA of office space in Q2.

In addition, the increase in office space prices dropped to 0.6% QoQ from 3.1% in Q2. Rentals also dropped to 0.5% QoQ from 3.1% previously.