Singapore MarketView Q1 2015
The net absorption for Q1 2015 was calculated to be at 123,811 sf. Islandwide vacancy rate remained relatively low at 4.9% while Grade A rents grew by 1.8% q-o-q to $11.40 psf/month.
Average prime rent for Orchard Road declined due to weaker performing assets. The market has shifted towards the advantage of tenants and more rental declines could be expected.
Business & Science Parks
Occupancy rate for business parks saw an uptick in Q1 2015. Stable demand and limited speculative future supply should see this trend continuing in 2015.
Sentiments remain subdued in the industrial market as poor external demand and high operating costs dampen manufacturers’ outlook.
Market players’ hope of a tweak in property measures were met with disappointment. Response to new launches in Q1 2015 remained lukewarm, leading to a 27% decline q-o-q in sales volume.
Total investment volume was higher by 19%
q-o-q due to a jump in the office market. The price disconnect between buyers and sellers prevails as sentiments remained cautious. Investors are becoming wary of the rising SIBOR.