Office rents rise 2.4% in Q3, prices up 0.4%: URA data

Prices of office space edged up 0.4 per cent in the third quarter after falling 1.4 per cent in the previous quarter.
Prices of office space edged up 0.4 per cent in the third quarter after falling 1.4 per cent in the previous quarter.PHOTO: ST FILE

SINGAPORE - Rents and prices of office space both increased in the third quarter, according to latest final data from the Urban Redevelopment Authority (URA) on Friday (Oct 27) as take-up rose and the vacancy rate fell.

Rents increased by 2.4 per cent compared with the decline of 1.1 per cent in the previous quarter, while prices edged up by 0.4 per cent after falling 1.4 per cent in the previous quarter.

The islandwide vacancy rate of office space rose to 13.3 per cent from 12.4 per cent at the end of the second quarter.

This came as the amount of occupied office space increased by a net 10,000 sq m in the three months to September, compared with the increase of just 1,000 sq m in the previous quarter.

The stock of office space increased by a net 91,000 sq m in the third quarter, compared with the increase of 76,000 sq m in the previous quarter. 

In the pipeline is a supply of about 607,000 sq m of office space compared with  719,000 sq m GFA at the end of second quarter.

Source: URA