Shanghai, Sydney skyscrapers trump Singapore in prime office space rental performance

Growth slipped 7% in the six months to 2Q16.

The incoming flood of supply in tandem with a slowing local economy has decimated rental growth of Singapore prime office spaces in comparison to the world’s global cities, according to Knight Frank's Skyscraper Index.

The index examined the rental performance of commercial buildings over 30 storeys in 23 leading cities across the globe and found that based on the performance of skyscrapers in the six months to 2Q16, Singapore showed the weakest growth as it slipped 7%. Singapore was also the only country among the 23 to have shown negative growth.

Meanwhile, Shanghai topped the index with 7.6% growth. Rounding out the top five are Sydney (7.6%), Hong Kong (6.6%), Taipei (5.7%), and Toronto (4.9%).

In terms of prime office rents for upper floors in skyscrapers, Singapore came in eighth with US$63/sqft/per annum (pa). Hong Kong offered the costliest spaces in the world, with US$278/sqft/pa. The top five also include Manhattan (US$158/sqft/pa), Tokyo (US$149/sqft/pa), London (US$114/sqft/pa), and San Francisco (US$113/sqft/pa).

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