Singapore office and retail rents post steeper slump in Q2: URA

Tourists walking along the path on the waterfront promenade, along Marina Bay Sands as the skyline of Singapore Central Business District stands in the background.
Tourists walking along the path on the waterfront promenade, along Marina Bay Sands as the skyline of Singapore Central Business District stands in the background.ST PHOTO: NEO XIAOBIN

SINGAPORE - It continued to be a tenant's market in the second quarter of this year, as office and retail rents continued falling - driven by weak sentiment and increased supply of space.

Office rents in the central region fell 3.5 per cent in the quarter, the steepest decline over five straight quarters of moderation, accordin to figures released on Friday (July 22) by the Urban Redevelopment Authority.

Overall office prices fell 1.5 per cent, also the largest decline in four straight quarters of falling prices.

Vacancy rate of office space edged down 0.1 percentage points to 9.1 per cent in the second quarter.

Rents of retail space in the central region also plunged more than previously. They fell 3.9 per cent, the most in its six straight quarters of decline.

Prices of retail space fell 3.1 per cent, the most five straight quarters of decline.

Vacancy rate of retail space rose 0.5 percentage points to 7.8 per cent, the highest in over five years.