Singapore Office Vacancies Climb to a 12-Year HighBy
Vacancies reach 13.3%, highest level since September 2005
Office rents rise 2.4% for the first gain in 10 quarters
Singapore office vacancies climbed to the highest in 12 years even as rents rebound, gaining for the first time in 10 quarters.
A gauge of office vacancy rates rose 0.9 percentage point to 13.3 percent in the third quarter, the highest since September 2005, data from the Urban Redevelopment Authority Friday showed. The office rental index added 2.4 percent.
Despite rising vacancies because of an oversupply of office space, there are signs the market has reached a turning point. Guocoland Ltd. submitted the winning S$1.62 billion ($1.2 billion) bid last month for a site earmarked for office development in Singapore’s central business district, the highest price per square foot for land in the city.
Home prices rose 0.7 percent in the quarter, the data showed, more than the 0.5 percent advance in preliminary figures released Oct. 2.
Rentals at shopping malls declined 0.2 percent while vacancies climbed 0.1 percentage point to 8.2 percent, the data showed.