Rents saw another decline but barely significant

Rents slipped to 1.2%--a measly improvement compared to the 4.2% fall in the last three months.

Colliers International says that on the leasing market front, an increasingly-challenging global economic environment continued to hold back demand. The lacklustre leasing demand for office space put further downward pressure on rents, which saw another quarter of decline in 2Q 2012.

It further said that however, cushioned by a better-than-expected economic performance in Singapore, as well as the temporary relief from a hiatus of major new office completions for the rest of 2012, the rate of rental decline moderated in 2Q 2012, as compared to the previous quarter.

Rents of islandwide Grade A office space slipped by 1.2 per cent in 2Q 2012, compared to the 4.2 percent fall in the preceding three months.

The modest rental decline in 2Q 2012 can be attributed to the relatively-firm stance adopted by some landlords towards rent expectations. Instead of lowering their rents, some landlords offered longer rent-free period, as well as more flexible lease terms, it said.

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