Fears rise over vacancy woes in Singapore's office market

Rentals to come under pressure.

According to Maybank Kim Eng, looking ahead to 2014 and beyond, weit sees vacancy risks and prime office rental pressures on the horizon with the impending completions of new office buildings in the CBD/Central area.

Here's more:

We note that it took a good five years from 2009 for ~6m sq ft of supply in the Downtown Core (including Downtown@Marina Bay) to be absorbed. There will be another similar onslaught (~6m sq ft) in 2013-2017, which means rentals will continue to come under pressure.

In our view, there is limited upside for office REITs from rental reversion; hence, we believe it is still too early to buy into the turnaround story.
 

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.