Raffles Place office rents rise in Q2 for first time since 2011: Jones Lang LaSalle

Office rents in Singapore eked out their first sequential rise since 2011 in the second quarter of this year, property consultancy Jones Lang LaSalle (JLL) said in a report on Monday.

They inched up 0.6 per cent from the first quarter of this year to the second quarter due to limited leasing options, JLL said.

It tracked Grade A net effective office rents in Raffles Place, which were US$720 per square metre per year on average in the second quarter. This translates to about $7.13 per square foot per month.

However, that figure was 3.1 per cent lower year-on-year.

JLL said that the office rental market in Asia Pacific financial centres "remained weak, with limited take-up in Hong Kong and Singapore mainly coming from small non-financial occupiers".

Office space capital values in Raffles Place rose 1.9 per cent in April through June from the preceding three months, which JLL said was mainly due to local investors.

Grade A office space there had an average capital value of US$22,251 per sq m in the second quarter, which works out to about $2,067 psf.