Premium grade office rents surge 6.1% in Q3: Colliers
The quarter-on-quarter increase was the highest in three years, and comes amid a continued shortage of office space in the central business district, the real estate services firm says.
SINGAPORE: Premium grade office rents in the Raffles Place/New Downtown area surged 6.1 per cent in the third quarter to S$11.67 psf per month amid a continued shortage of office space in the central business district, real estate services firm Colliers International said on Monday (Oct 13).
The 6.1 per cent quarter-on-quarter increase was the highest in three years, and was nearly double the 3.1 percent pace recorded in the second quarter.
Grade A office space in the Raffles Place/New Downtown area rose 2.9 per cent quarter on quarter to S$10.25 psf in July-September, while Grade A rents in the Shenton Way and Tanjong Pagar area gained 2.9 per cent to S$8.83 psf.
Colliers defines premium-grade offices as those found in relatively new buildings with large floor plates of more than 20,000sqft as well as intelligent features. Examples of such buildings include Marina Bay Financial Centre and Asia Square.
Grade A offices, on the other hand, refer to those in good quality buildings in strategic locations that are well served by amenities and transport nodes, for example 6 Battery Road and Republic Plaza Tower 1.
Colliers said the rise in office rents comes amid a supply squeeze, with the average occupancy rates of most micro-markets having breached the technical full occupancy rate of 95 per cent.
For instance, as of September 2014, the average occupancy rate for Grade A space in Raffles Place/New Downtown and Shenton Way/Tanjong Pagar stood at 97.2 per cent and 99.4 per cent, respectively.
- CNA/cy
- wong chee tat :)
Showing posts with label Marina Bay Financial Centre. Show all posts
Showing posts with label Marina Bay Financial Centre. Show all posts
Wednesday, October 15, 2014
Thursday, June 27, 2013
Singapore's office rental market expected to go up
Singapore's office rental market expected to go up
By Toni Waterman
POSTED: 26 Jun 2013 11:24 PM
Singapore's office rental market is on the rebound after bottoming out in the last quarter of 2012, according to Cushman & Wakefield.
SINGAPORE: Singapore's office rental market is on the rebound after bottoming out in the last quarter of 2012, according to Cushman & Wakefield.
In its quarterly office market report, the real estate firm said rents are on the rise and vacancies are drying up, though not all office buildings are sharing the comeback.
Cushman & Wakefield's latest office market report showed that the average rent in prime Grade A locations was up 4.2 per cent in the second quarter, from a quarter earlier, hitting S$9.03 a square foot per month.
That was up from S$8.99 per square foot per month in the first quarter of this year.
Sigrid Zialcita, managing director of research for the Asia Pacific at Cushman & Wakefield, said: "We are expecting rents to go up across the board on the back of very solid demand.
"We're not going to see the spikes we've seen in the 2007-2008 time frame, where rents went as high as S$18-S$19 a foot."
The report showed that all the CBD submarkets saw average rents appreciate, with Marina Bay and Shenton Way seeing a 9 per cent rise in rents. In the fringe area, Orchard Road's average rents moved up by around 4.6 per cent quarter-on-quarter.
The average rent in the suburban submarket rose slightly -- by 1.3 per cent quarter-on-quarter -- to S$5.64 psf per month.
Vacancy rates for Grade A office space is also improving -- dropping to 3.7 per cent in the second quarter from 5.0 per cent in the first quarter.
Vacancies at Marina Bay shrank to 3.6 per cent in Q2, from 5.6 per cent a quarter ago and 12.1 per cent a year ago. Raffles Place had an overall vacancy rate of 5.5 per cent, while Shenton Way's vacancy rate stood at 4.9 per cent.
Experts said diversity in the tenant pool has helped fill the office space.
"Long gone are purely financial institutions," said Desmond Sim, associate director of CBRE Research. "You have complimentary services like insurance, you've got legal all coming in to take up Grade A stock within Marina Bay and Raffles Place."
Also helping the office rental market is the limited new supply coming to the market.
Mr Sim said: "This year, we have the Asia Square Tower II coming on stream. Next year, we have CapitaGreen that will come on stream. Then we actually have a break of no Grade A product coming in 2015.
"So if someone is trying to take advantage of the current low Grade A rents, they might realize the Grade A stock coming online is quite limited."
One place where vacancies are not falling is in the suburbs, where vacancies are expected to rise to over 8 per cent through 2014.
The suburban vacancy rate was 2.7 per cent in 2012, and is expected to rise to 6.0 per cent this year and hit 8.2 per cent in 2014.
Sigrid Zialcita said: "In the suburbs, we're going to see some massive projects delivered and add space, but again we don't think it's a huge concern for the market because the take up we've seen has been brisk, and going forward we see very healthy leasing occurring in this properties."
There will be more options, but not necessarily better prices, as experts said despite rising vacancies, rental rates in the suburbs will remain stable at around S$5.50 per square foot this year to 2014.
- CNA/al
- wong chee tat :)
By Toni Waterman
POSTED: 26 Jun 2013 11:24 PM
Singapore's office rental market is on the rebound after bottoming out in the last quarter of 2012, according to Cushman & Wakefield.
SINGAPORE: Singapore's office rental market is on the rebound after bottoming out in the last quarter of 2012, according to Cushman & Wakefield.
In its quarterly office market report, the real estate firm said rents are on the rise and vacancies are drying up, though not all office buildings are sharing the comeback.
Cushman & Wakefield's latest office market report showed that the average rent in prime Grade A locations was up 4.2 per cent in the second quarter, from a quarter earlier, hitting S$9.03 a square foot per month.
That was up from S$8.99 per square foot per month in the first quarter of this year.
Sigrid Zialcita, managing director of research for the Asia Pacific at Cushman & Wakefield, said: "We are expecting rents to go up across the board on the back of very solid demand.
"We're not going to see the spikes we've seen in the 2007-2008 time frame, where rents went as high as S$18-S$19 a foot."
The report showed that all the CBD submarkets saw average rents appreciate, with Marina Bay and Shenton Way seeing a 9 per cent rise in rents. In the fringe area, Orchard Road's average rents moved up by around 4.6 per cent quarter-on-quarter.
The average rent in the suburban submarket rose slightly -- by 1.3 per cent quarter-on-quarter -- to S$5.64 psf per month.
Vacancy rates for Grade A office space is also improving -- dropping to 3.7 per cent in the second quarter from 5.0 per cent in the first quarter.
Vacancies at Marina Bay shrank to 3.6 per cent in Q2, from 5.6 per cent a quarter ago and 12.1 per cent a year ago. Raffles Place had an overall vacancy rate of 5.5 per cent, while Shenton Way's vacancy rate stood at 4.9 per cent.
Experts said diversity in the tenant pool has helped fill the office space.
"Long gone are purely financial institutions," said Desmond Sim, associate director of CBRE Research. "You have complimentary services like insurance, you've got legal all coming in to take up Grade A stock within Marina Bay and Raffles Place."
Also helping the office rental market is the limited new supply coming to the market.
Mr Sim said: "This year, we have the Asia Square Tower II coming on stream. Next year, we have CapitaGreen that will come on stream. Then we actually have a break of no Grade A product coming in 2015.
"So if someone is trying to take advantage of the current low Grade A rents, they might realize the Grade A stock coming online is quite limited."
One place where vacancies are not falling is in the suburbs, where vacancies are expected to rise to over 8 per cent through 2014.
The suburban vacancy rate was 2.7 per cent in 2012, and is expected to rise to 6.0 per cent this year and hit 8.2 per cent in 2014.
Sigrid Zialcita said: "In the suburbs, we're going to see some massive projects delivered and add space, but again we don't think it's a huge concern for the market because the take up we've seen has been brisk, and going forward we see very healthy leasing occurring in this properties."
There will be more options, but not necessarily better prices, as experts said despite rising vacancies, rental rates in the suburbs will remain stable at around S$5.50 per square foot this year to 2014.
- CNA/al
- wong chee tat :)
Wednesday, February 20, 2013
Marina One set to raise bar for future integrated developments
Marina One set to raise bar for future integrated developments
By Saifulbahri Ismail | Posted: 19 February 2013 1515 hrs
SINGAPORE: The Marina One mixed-use development in the heart of Singapore's Central Business District (CBD) will be a coveted business and lifestyle destination that will raise the bar for integrated developments and act as a catalyst to attract and grow new businesses.
That is the vision of M+S, a joint venture company owned by Malaysia's Khazanah Holdings Bhd and Singapore's Temasek Holdings, that is working on the landmark project.
M+S also said Marina One, designed by world renowned architect Christoph Ingenhoven, marks a brand new chapter in the Marina Bay Masterplan.
Its design was unveiled on Tuesday by Singapore's Prime Minister Lee Hsien Loong and his Malaysian counterpart, Mr Najib Razak, who are holding their Leaders' Retreat.
M+S said Marina One will be completed in 2017, with a gross floor area of 3.67 million square feet and is valued at S$7 billion.
It consists of Marina One Residences, Marina One Offices as well as a retail podium.
Marina One Residences comprises two towers of 1,042 luxury city residences, ranging from one- to four- bedroom units, including penthouses. These will be launched in the second half of the year.
Marina One Offices -- with east and west towers -- offer 1.88 million square feet of prime office space.
Its crown jewels will be two 100,000 square feet office floor plates, one of the largest in Asia.
Marina One will also have a retail podium called The Heart, which will also serve as a sanctuary and green space.
The development will also incorporate a unique garden ecosystem by landscape architect Gustafson Porter, best known for their world-class design of Singapore's Bay East, Gardens by the Bay.
PM Lee said he is happy to see the bricks and mortar starting to come up on site.
He added: "It's going to be an iconic project in the middle of our new business district for many, many more years to come. This is a project that both countries will be proud of and which will thrive and prosper in our city and friendship."
Mr Najib said he is excited to see the design for himself.
"I think it's a wonderful design. I think we have a real winner in this Marina One and it will certainly fulfil our expectations... A landmark, an iconic building and what we see today is the beginning of that iconic building," he added.
The two leaders were also briefed on the progress of the other joint project located near Kampong Glam.
The project, called DUO, includes office, residential and hotel components.
It sits on 160,000 square metres of land and is valued at S$4 billion.
The DUO and Marina One are part of six land parcels jointly developed by Singapore and Malaysia under a land swop deal agreed on in 2010.
- CNA/al/sf/ir
- wong chee tat :)
By Saifulbahri Ismail | Posted: 19 February 2013 1515 hrs
SINGAPORE: The Marina One mixed-use development in the heart of Singapore's Central Business District (CBD) will be a coveted business and lifestyle destination that will raise the bar for integrated developments and act as a catalyst to attract and grow new businesses.
That is the vision of M+S, a joint venture company owned by Malaysia's Khazanah Holdings Bhd and Singapore's Temasek Holdings, that is working on the landmark project.
M+S also said Marina One, designed by world renowned architect Christoph Ingenhoven, marks a brand new chapter in the Marina Bay Masterplan.
Its design was unveiled on Tuesday by Singapore's Prime Minister Lee Hsien Loong and his Malaysian counterpart, Mr Najib Razak, who are holding their Leaders' Retreat.
M+S said Marina One will be completed in 2017, with a gross floor area of 3.67 million square feet and is valued at S$7 billion.
It consists of Marina One Residences, Marina One Offices as well as a retail podium.
Marina One Residences comprises two towers of 1,042 luxury city residences, ranging from one- to four- bedroom units, including penthouses. These will be launched in the second half of the year.
Marina One Offices -- with east and west towers -- offer 1.88 million square feet of prime office space.
Its crown jewels will be two 100,000 square feet office floor plates, one of the largest in Asia.
Marina One will also have a retail podium called The Heart, which will also serve as a sanctuary and green space.
The development will also incorporate a unique garden ecosystem by landscape architect Gustafson Porter, best known for their world-class design of Singapore's Bay East, Gardens by the Bay.
PM Lee said he is happy to see the bricks and mortar starting to come up on site.
He added: "It's going to be an iconic project in the middle of our new business district for many, many more years to come. This is a project that both countries will be proud of and which will thrive and prosper in our city and friendship."
Mr Najib said he is excited to see the design for himself.
"I think it's a wonderful design. I think we have a real winner in this Marina One and it will certainly fulfil our expectations... A landmark, an iconic building and what we see today is the beginning of that iconic building," he added.
The two leaders were also briefed on the progress of the other joint project located near Kampong Glam.
The project, called DUO, includes office, residential and hotel components.
It sits on 160,000 square metres of land and is valued at S$4 billion.
The DUO and Marina One are part of six land parcels jointly developed by Singapore and Malaysia under a land swop deal agreed on in 2010.
- CNA/al/sf/ir
- wong chee tat :)
Thursday, January 24, 2013
Keppel Land adopts "wait-and-see" approach after property cooling measures
Keppel Land adopts "wait-and-see" approach after property cooling measures
By Lynda Hong | Posted: 23 January 2013 2323 hrs
SINGAPORE: Property group Keppel Land expects new home sales in Singapore to "come down quite a bit" this year, after new private home sales hit a record 22,000 units in 2012.
The developer of Reflections at Keppel Bay is not going to rush into launching new projects in the coming months. Instead, Keppel Land is adopting a wait-and-see approach, before making its next move. This after the seventh round of property cooling measures were introduced by the government earlier this month.
Already, some developers, like Qbay, have announced discounts to move sales.
Ang Wee Gee, CEO of Keppel Land, said: "We see prices perhaps consolidating. But we don't see a major correction. But neither do we see the price spiking further because the government will introduce further measures to dampen it. So I suppose where the situation, where the upside possibility is not high, but the downside risk may not be that high as well."
Keppel Land has a huge cash position of S$1.6 billion. This gives it holding power from launching new projects till markets improve. But the company reports net profit in Q4 2012 halved from a year earlier to S$527.3 million. Full year net profit was 39 per cent lower at S$838.37 million.
Still, Keppel Land's earnings beat analysts expectations.
Wilson Liew, an analyst at Maybank-Kim Eng, said: "We are looking at how China sales performed this year as they have shown in FY 2012 that sales rebounded somewhat, and we hope to see the sales momentum to be carried into 2013.
"We also would look out for the potential divestment of Marina Bay Financial Centre Tower 3, sometime this year. In Singapore, we are likely to see a slowdown in sales for the next three months on the back of the cooling measures.
"But we still think that the long-term fundamentals are still attractive, particularly for the residential sector and we will lookout how well Keppel Land does in their launches, such as the ones in Tanah Merah."
Key contributors to last year's total sales of 2,350 homes, Singapore and China will continue to be Keppel Land's core market. The property giant said the stringent cooling measures introduced in the two countries will prevent asset bubbles from forming, supporting a healthy development of these markets. So far, half of Keppel Land's assets are in Singapore, while 35 per cent are in China.
Keppel Land also proposed a final dividend of 12 cents per share.
-CNA/ac
- wong chee tat :)
By Lynda Hong | Posted: 23 January 2013 2323 hrs
SINGAPORE: Property group Keppel Land expects new home sales in Singapore to "come down quite a bit" this year, after new private home sales hit a record 22,000 units in 2012.
The developer of Reflections at Keppel Bay is not going to rush into launching new projects in the coming months. Instead, Keppel Land is adopting a wait-and-see approach, before making its next move. This after the seventh round of property cooling measures were introduced by the government earlier this month.
Already, some developers, like Qbay, have announced discounts to move sales.
Ang Wee Gee, CEO of Keppel Land, said: "We see prices perhaps consolidating. But we don't see a major correction. But neither do we see the price spiking further because the government will introduce further measures to dampen it. So I suppose where the situation, where the upside possibility is not high, but the downside risk may not be that high as well."
Keppel Land has a huge cash position of S$1.6 billion. This gives it holding power from launching new projects till markets improve. But the company reports net profit in Q4 2012 halved from a year earlier to S$527.3 million. Full year net profit was 39 per cent lower at S$838.37 million.
Still, Keppel Land's earnings beat analysts expectations.
Wilson Liew, an analyst at Maybank-Kim Eng, said: "We are looking at how China sales performed this year as they have shown in FY 2012 that sales rebounded somewhat, and we hope to see the sales momentum to be carried into 2013.
"We also would look out for the potential divestment of Marina Bay Financial Centre Tower 3, sometime this year. In Singapore, we are likely to see a slowdown in sales for the next three months on the back of the cooling measures.
"But we still think that the long-term fundamentals are still attractive, particularly for the residential sector and we will lookout how well Keppel Land does in their launches, such as the ones in Tanah Merah."
Key contributors to last year's total sales of 2,350 homes, Singapore and China will continue to be Keppel Land's core market. The property giant said the stringent cooling measures introduced in the two countries will prevent asset bubbles from forming, supporting a healthy development of these markets. So far, half of Keppel Land's assets are in Singapore, while 35 per cent are in China.
Keppel Land also proposed a final dividend of 12 cents per share.
-CNA/ac
- wong chee tat :)
Tuesday, January 15, 2013
Temporary sheltered linkways to be provided at Marina Bay
Temporary sheltered linkways to be provided at Marina Bay
Posted: 14 January 2013 2316 hrs
SINGAPORE: The Land Transport Authority (LTA) will be providing temporary sheltered pedestrian linkways along the roads between Marina Bay Financial Centre and Marina Bay Station.
Transport Minister Lui Tuck Yew said this in response to Mr Gan Thiam Poh's parliamentary question on whether the transport ministry will provide a sheltered or underground pedestrian walkway.
Mr Lui addded that the Urban Redevelopment Authority plans to build an extensive underground pedestrian network (UPN).
This is to link the developments in Marina Bay to the nearby MRT stations, including Marina Bay Station.
- CNA/xq
- wong chee tat :)
Posted: 14 January 2013 2316 hrs
SINGAPORE: The Land Transport Authority (LTA) will be providing temporary sheltered pedestrian linkways along the roads between Marina Bay Financial Centre and Marina Bay Station.
Transport Minister Lui Tuck Yew said this in response to Mr Gan Thiam Poh's parliamentary question on whether the transport ministry will provide a sheltered or underground pedestrian walkway.
Mr Lui addded that the Urban Redevelopment Authority plans to build an extensive underground pedestrian network (UPN).
This is to link the developments in Marina Bay to the nearby MRT stations, including Marina Bay Station.
- CNA/xq
- wong chee tat :)
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