SINGAPORE - Market conditions remained challenging for the office and retail property segments in the first quarter, as rentals and prices fell further.
Office rents declined at a faster clip of 3.4 per cent in the first quarter from the last three months of 2016, compared with 1.8 per cent drop from the third to the fourth quarter.
Prices of office space, meanwhile, fell by 4 per cent in the first quarter - markedly worse than the 0.6 per cent decline in the previous quarter - according the data from the Urban Redevelopment Authority on Friday (April 28).
The vacancy rate of office space climbed to 11.6 per cent at the end of the first quarter, from 11.1 per cent at the end of last December.
Signs of distress persisted in the retail property segment, where prices plunged by 4 per cent from the fourth to first quarter, reversing the 0.2 per cent increase recorded in the previous quarter.
Retail rents declined by 2.9 per cent in the first three months of the year, faster than the 1.2 per cent drop in the fourth quarter.
URA figures showed that island-wide vacancy rate of retail space rose to 7.7 per cent at the end of March 31, up from 7.5 per cent at the end of the previous quarter.