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 :)
Showing posts with label Marina Bay Link Mall. Show all posts
Showing posts with label Marina Bay Link Mall. Show all posts
Thursday, June 27, 2013
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 :)
Friday, February 4, 2011
Tenants at Marina Bay Link Mall report brisk business
Tenants at Marina Bay Link Mall report brisk business
By Lynda Hong | Posted: 03 February 2011 2340 hrs
SINGAPORE: The Marina Bay Link Mall, one of Singapore's newest underground malls, is reporting brisk business after just a month of opening.
Some tenants said sales have doubled since they started operations.
The mall has a catchment of about 55,000 workers and residents in the area.
The number is expected to grow with additional condominiums being built.
Currently, four in 10 of the retail space is occupied by food and beverage outlets.
By the first quarter of 2012, another 82,500 sq feet of retail space will be added.
Tenders will be called for by the first quarter of 2011.
Already more than half of the new space has been committed for banking services and DBS Bank is taking up 66 per cent of the new space.
"There is a huge population out here, from Raffles Place to Tanjong Pagar, to Shenton Way, and now at the Marina Bay area. There can be never too many shops and F&B. We need to make sure that we just have the quality, the good mix, and of course great customer service, to keep them coming back," said Rose Tong, director of Marketing, Retail, with Raffles Quay Asset Management.
- CNA/fa
- wong chee tat :)
By Lynda Hong | Posted: 03 February 2011 2340 hrs
SINGAPORE: The Marina Bay Link Mall, one of Singapore's newest underground malls, is reporting brisk business after just a month of opening.
Some tenants said sales have doubled since they started operations.
The mall has a catchment of about 55,000 workers and residents in the area.
The number is expected to grow with additional condominiums being built.
Currently, four in 10 of the retail space is occupied by food and beverage outlets.
By the first quarter of 2012, another 82,500 sq feet of retail space will be added.
Tenders will be called for by the first quarter of 2011.
Already more than half of the new space has been committed for banking services and DBS Bank is taking up 66 per cent of the new space.
"There is a huge population out here, from Raffles Place to Tanjong Pagar, to Shenton Way, and now at the Marina Bay area. There can be never too many shops and F&B. We need to make sure that we just have the quality, the good mix, and of course great customer service, to keep them coming back," said Rose Tong, director of Marketing, Retail, with Raffles Quay Asset Management.
- CNA/fa
- wong chee tat :)
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