Prime office rents in Singapore fell 3.5 per cent in the fourth quarter of last year over the previous three months, a smaller rate of decline than the 4.5 per cent drop in the third quarter.
Rents for all of last year dropped 8.5 per cent, after falling 3.1 per cent in 2019, Urban Redevelopment Authority data showed yesterday.
It also showed that prices of office space in the central region decreased 3.1 per cent in the fourth quarter, contrasting with an increase of 0.2 per cent in the third.
Office prices shrank 10.7 per cent across last year compared with a decrease of 0.6 per cent in 2019.
There was about 770,000 sq m gross floor area (GFA) of office space in the pipeline as at Dec 31 last year compared with 767,000 sq m at Sept 30 last year.
The amount of occupied office space increased by 2,000 sq m of net lettable area (NLA) in the fourth quarter, compared with a decrease of 19,000 sq m in the third.
The stock of office space decreased by 13,000 sq m of NLA in the fourth quarter, compared with a fall of 33,000 sq m in the previous three months.
As a result, the islandwide vacancy rate fell to 11.8 per cent as at Dec 31, from 12 per cent as at Sept 30.
Rents for last year declined by 14.7 per cent, contrasting with an increase of 2.9 per cent in 2019.
Yesterday's data also showed that prices of retail space in the central region decreased by 2.1 per cent in the fourth quarter, reversing the 2.2 per cent rise in the third.
Prices of retail space shrank 4.5 per cent last year against an increase of 1.3 per cent in 2019.
There was a total supply of 426,000 sq m of GFA of retail space from projects in the pipeline as at Dec 31 last year, slightly lower than the 428,000 sq m at Sept 30 last year.
The amount of occupied retail space rose by 24,000 sq m of NLA in the fourth quarter, compared with a decrease of 50,000 sq m of NLA in the third.
The stock of retail space fell by 26,000 sq m of NLA as at Dec 31, after shrinking by 53,000 sq m in the previous quarter.
As a result, the islandwide vacancy rate of retail space declined to 8.8 per cent as at Dec 31 from 9.6 per cent as at Sept 30.
THE BUSINESS TIMES
