Office prices in Central Area shot up 46% over 2010-2013

But it's no match to another segment.

Maybank Kim Eng reports that according to the URA, office prices in the Central Area have increased by 46% over 2010-2013 in the aftermath of the GFC and are currently 10.6% above the 2008 peak levels. 

But they still pale in comparison with prices in the industrial warehouse segment, which have shot up a whopping 115% over the same period and are currently 71% above the 2008 peak levels.

Here's more from Maybank Kim Eng:

Based on property consultancy CBRE’s records, cap rates of Grade A office space have also come off from a peak of 6.6% in 3Q08 to a trough of 3.71% in 1Q-3Q13 on the back of yield compression.

Cap rates have bottomed out to 3.8% in 4Q13. We do not think there will be further compression and cap rates will remain at ~4% levels in 2014-2016.

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