S'pore office rents flat, while retail rents dip

The amount of occupied office space decreased by 55,000 sq m of net lettable area in the second quarter of 2020.
The amount of occupied office space decreased by 55,000 sq m of net lettable area in the second quarter of 2020.PHOTO: ST FILE

Office rents in the central region remained unchanged in the second quarter after a 0.8 per cent drop in the first, but prices for space fell, data showed yesterday.

It noted that buying offices in that zone was cheaper after values contracted 4.3 per cent after they eased 4 per cent in the first quarter.

There was a total supply of about 668,000 sq m gross floor area of space in the pipeline as of June 30, compared with 682,000 sq m as of March 31.

Occupied office space decreased by 55,000 sq m of net lettable area in the second quarter, a much bigger drop than the 7,000 sq m decrease in the first.

But the stock of space expanded by 43,000 sq m of net lettable area after rising 33,000 sq m in the first quarter.

This drove the islandwide vacancy rate for offices to 12.1 per cent as of June 30, up from 11 per cent as of March 31.

But retail rents in the central region shrank 3.5 per cent in the second quarter, compared with the first three months, when they had eased 2.3 per cent.

Prices of retail space in the central region fell 1.5 per cent in the second quarter, a smaller drop than the 3.1 per cent decrease in the first.

The amount of occupied retail space contracted by 93,000 sq m of net lettable area in the second quarter, compared with a 43,000 sq m drop in the first.

But the stock of retail space rose by 4,000 sq m of net lettable area in the second quarter, compared with a decrease of 15,000 sq m in the previous quarter.

This sent the islandwide vacancy rate to 9.6 per cent as of June 30, up from 8 per cent as of March 31.

THE BUSINESS TIMES

A version of this article appeared in the print edition of The Straits Times on July 25, 2020, with the headline 'S'pore office rents flat, while retail rents dip'. Print Edition | Subscribe