View Full Version : S'pore CBD rents half of HK's: study
http://www.businesstimes.com.sg/breaking-news/singapore/spore-cbd-rents-half-hks-study-20130220
Published February 20, 2013
S'pore CBD rents half of HK's: study
By Lee Meixian
Office rents in Singapore's central business district were 51.7 per cent lower than Hong Kong's last year, according to Cushman & Wakefield's Office Space Across the World 2013 report released Wednesday.
Singapore rents fell 16 per cent year-on-year, emblematic of conditions in other regional financial centers like Hong Kong (down 26 per cent) and Tokyo (down 11 per cent).
Rents here are increasingly competitive for the region, with rates at S$8.61 psf, compared to Hong Kong which has the most expensive rents in the region at HK$104.47 psf (S$16.66 psf).
Cushman & Wakefield expects Singapore rents to bottom out in 2013 and forecast increases in late 2013 or early 2014.
"Rents will remain steady given strong supply pipeline, with demand remaining robust," it said.
http://www.businesstimes.com.sg/premium/singapore/office-rents-here-half-hong-kongs-20130221
Published February 21, 2013
Office rents here half that of Hong Kong's
Govt's push to site office spaces beyond the CBD helps to moderate rents
By Lee Meixian
SINGAPORE'S prime office rents are becoming more competitive, say commercial real estate brokers and consultants Cushman & Wakefield in their latest report, Office Space Across the World 2013.
Rents in the Central Business District (CBD) here last year came in at only half those in Hong Kong, which has the Asia-Pacific's highest rents at HK$104.47 per square foot (S$16.66 psf).
The rental rates in Singapore, ranked 14th in the Asia-Pacific, were $8.61 psf last year; the Republic was the 11th in 2011.
Globally, rents in Hong Kong last year were second only to those in London; Tokyo fell from third to fifth.
Commercial rents here are kept low relative to, say, Hong Kong's, by the government's push to decentralise business activities beyond the CBD; this tempers leasing activity and leaves more vacancies in super-grade A spaces, thus moderating rents.
Last month, for instance, the Ministry of National Development said it plans to provide at least 13 million sq m of commercial space outside the city by 2030, thus spreading out commercial activity to the regional hubs.
According to the Cushman & Wakefield report, Singapore's rents fell 16 per cent year-on-year; this trend was mirrored in regional financial centres such as Hong Kong, where the fall was 26 per cent, and Tokyo, down 11 per cent.
Cushman & Wakefield expects Singapore rents to bottom out, and then to start rising late this year and early next year, buoyed by robust demand.
Toby Dodd, a country manager at Cushman & Wakefield, said: "Rents have reached the bottom of the cycle and will remain steady, given a strong supply pipeline of new buildings, including Asia Square Tower 2 and CapitaGreen."
He added that, with some tenants' giving up their Grade A space in buildings such as One Raffles Quay and Capital Tower to move to locations outside the CBD, Grade A space returns to the market would take place.
He said now was a good time for tenants to secure long-term lease agreements here; banking and financial-sector tenants in Hong Kong looking to cut costs, for example, can consider relocating here.
"Demand is set to remain robust, further underpinning the steady rents. Requirements from the financial sector are forecast to be muted. New tenants from the legal services, professional services and energy industries are expected to command a significant share of new leasing activities this year," he said.
Although prime office rents in Asia's regional financial centres such as Singapore, Hong Kong and Tokyo fell, they inched up 3 per cent over the year Asia-wide on slower economic growth.
Beijing dropped one place to seventh in the global ranking as rents stayed unchanged over the last 12 months; New Delhi rose one rank to fourth on the back of a 25-per-cent jump in prime rents.
Globally, prime rents rose 3 per cent last year despite economic uncertainty, but this increase was largely driven by impressive growth in South America, particularly Brazil and Colombia.
Wow!
I also read that prime property prices in Singapore is less than half of Hong Kong! :scared-3:
Think they should just introduce cooling measures for commercial and office properties despite what has been written below because half is not cheap enough! We are not competitive enough vs HK!
http://www.businesstimes.com.sg/premium/singapore/office-rents-here-half-hong-kongs-20130221
Published February 21, 2013
Office rents here half that of Hong Kong's
Govt's push to site office spaces beyond the CBD helps to moderate rents
By Lee Meixian
SINGAPORE'S prime office rents are becoming more competitive, say commercial real estate brokers and consultants Cushman & Wakefield in their latest report, Office Space Across the World 2013.
Rents in the Central Business District (CBD) here last year came in at only half those in Hong Kong, which has the Asia-Pacific's highest rents at HK$104.47 per square foot (S$16.66 psf).
The rental rates in Singapore, ranked 14th in the Asia-Pacific, were $8.61 psf last year; the Republic was the 11th in 2011.
Globally, rents in Hong Kong last year were second only to those in London; Tokyo fell from third to fifth.
Commercial rents here are kept low relative to, say, Hong Kong's, by the government's push to decentralise business activities beyond the CBD; this tempers leasing activity and leaves more vacancies in super-grade A spaces, thus moderating rents.
Last month, for instance, the Ministry of National Development said it plans to provide at least 13 million sq m of commercial space outside the city by 2030, thus spreading out commercial activity to the regional hubs.
According to the Cushman & Wakefield report, Singapore's rents fell 16 per cent year-on-year; this trend was mirrored in regional financial centres such as Hong Kong, where the fall was 26 per cent, and Tokyo, down 11 per cent.
Cushman & Wakefield expects Singapore rents to bottom out, and then to start rising late this year and early next year, buoyed by robust demand.
Toby Dodd, a country manager at Cushman & Wakefield, said: "Rents have reached the bottom of the cycle and will remain steady, given a strong supply pipeline of new buildings, including Asia Square Tower 2 and CapitaGreen."
He added that, with some tenants' giving up their Grade A space in buildings such as One Raffles Quay and Capital Tower to move to locations outside the CBD, Grade A space returns to the market would take place.
He said now was a good time for tenants to secure long-term lease agreements here; banking and financial-sector tenants in Hong Kong looking to cut costs, for example, can consider relocating here.
"Demand is set to remain robust, further underpinning the steady rents. Requirements from the financial sector are forecast to be muted. New tenants from the legal services, professional services and energy industries are expected to command a significant share of new leasing activities this year," he said.
Although prime office rents in Asia's regional financial centres such as Singapore, Hong Kong and Tokyo fell, they inched up 3 per cent over the year Asia-wide on slower economic growth.
Beijing dropped one place to seventh in the global ranking as rents stayed unchanged over the last 12 months; New Delhi rose one rank to fourth on the back of a 25-per-cent jump in prime rents.
Globally, prime rents rose 3 per cent last year despite economic uncertainty, but this increase was largely driven by impressive growth in South America, particularly Brazil and Colombia.
Wow!
I also read that prime property prices in Singapore is less than half of Hong Kong! :scared-3:
Think they should just introduce cooling measures for commercial and office properties despite what has been written below because half is not cheap enough! We are not competitive enough vs HK!
Our cars are thrice the price of theirs. So it kind of balance up
Our cars are thrice the price of theirs. So it kind of balance up
gotta consider price of parking lot too. ours is virtually free.
CBD Rents better for foreigner, more coy will come here, more job will create.
The Air in singapore is better, the Environment here is better.
Just need to sort out the transport issue, thing will be all right, don't forget Jurong area going to be 2nd Financial Hub.
More cooling measures that mean will made those Investor in this area earn less (but not lossing money??) , no matter what, it is a good news that our CBD rent is lower then HK :rolleyes:
Wow!
I also read that prime property prices in Singapore is less than half of Hong Kong! :scared-3:
Think they should just introduce cooling measures for commercial and office properties despite what has been written below because half is not cheap enough! We are not competitive enough vs HK!
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