Singapore prime office rents in 2018 have driven up amidst tightening vacancies of office space.
This contributing factor saw average CBD (central business district) Grade A office rents increased by 2.4 per cent, from Q3 to Q4 2018.
Strong broad-based demand, mainly from financial, professional services, technology and flexible workspace firms, was quoted as another contributing factor, bringing full year growth for 2018 to 15%.
In same report by Colliers International, growth of quarter on quarter grade B office rents was 1.4%, and 13.7% for full year.
Rising Office Rents time to consider Office Space for Sale?
For investment of Office Space, ABSD (additional buyer’s stamp duty) applicable on residential property purchase, is expected to fuel investors’ interest towards commercial sector.
With an expected rise in office rental due to tightening vacancies and an impending supply shortfall over 2019 to 2021, investors are expected to seek opportunities in this property sector.
As of 4th quarter 2018, URA real estate statistics (above image) reported a decline in pipeline supply of office space by 7.7%, from 793,000 sqm in 3Q2018 to 732,000 sqm in 4Q2018.
Completed in mid-2016, SBF Center offers small businesses an opportunity to own a Grade A-like strata office space in Singapore’s CBD.
Located within few minutes’ walk to Tanjong Pagar MRT, each unit comes with full height glass panel and has a ceiling height of 4m.
Nearing full occupancy, SBF Center last transacted unit was a 592 sqft office space, and it was closed at $3,199 per sq. ft. (psf)
The monthly average psf as extracted from SRX indicated transacted prices at lower than that purchased directly from developer in 2013 and 2014.
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