Singapore office rents to grow 15-20% in 2011

The office property market is expected to remain on a growth trajectory in the short to medium term.

According to Colliers International, the growth is supported by a recovering global economy, as well as the strengthening of Singapore's position as a regional Financial Hub amid the government's effort in building its physical, economic and social infrastructure.

In addition, continued political instability in the Middle East and North Africa regions could prompt some companies to relocate their bases to other parts of the Asia Pacific region, including Singapore. This could have a positive boost in demand for office space in Singapore; and in turn, provide further support to absorb the 2.8 million sq ft of new CBD Grade A office space slated to complete in 2011, which has already achieved a healthy overall pre-commitment rate of close to 60 per cent as of 1Q 2011.

Rents for CBD Grade A office space are thus expected to increase by between 15 per cent and 20 per cent for the whole of 2011.

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