Singapore Q2 Commercial Property Market Review
July 24, 2016
Transaction prices and rentals of office and retail properties in Singapore continued downwards trend in the second quarter when compared with those in the first quarter, latest data released by Singapore's urban land authority reveals.
During the second quarter ended June, total transaction prices of office space in Singapore dipped down 1.5% when compared with the first quarter. Rentals of office space fell by 3.5% in the second quarter 2016, compared with decline of 2.1% in the first quarter, overall performance was stable.
Office Space
As the occupied office space increased faster in the second quarter than the first quarter, even the stock of office space also increased, as result, the island-wide vacancy rate of office space at the end of 2nd quarter 2016 fell to 9.1%, from 9.2% at the end of the previous quarter.
Retail Property Market
However so, the prices of retail space decreased faster in the second quater by 3.1%, when compared to the decrease of 1.9% in the previous quarter. Rentals of retail space decreased by 3.9% in the latest quarter, compared to the decrease of 1.9% in the previous quarter
The amount of occupied retail space increased by 1,000 sq m (nett) in 2nd quarter 2016, compared to the increase of 11,000 sq m (nett) in the previous quarter, but the stock of retail space increased by 29,000 sq m (nett) during the latest quarter, faster than the the increase of 19,000 sq m (nett) in the first quarter.
Occupied retail space increased in the April-June quarter, although the increase is less than the first quarter, the stock of retail space increased more than that in the previous quarter. As a result, the island-wide vacancy rate of retail space rose to 7.8% at the end of 2nd quarter 2016, from 7.3% at the end of the previous quarter.
Amid rising vacancy rates, landlords offers "more flexible terms, including short-term and lower rents, when lease came up for renewal", research report by JLL pointed.
*Continue here to read Singapore Q2 overview on commercial property market
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