Singapore’s office sector continued to attract new foreign investors. Underpinned by strong rental growth in the occupier market, there is steady investor interest in office buildings.
Grade A Core CBD rents grew for the sixth consecutive quarter in Q4 2018 to $10.80 psf/mth, reflecting a 20.7% growth from the last trough back in Q2 2017.
New-builts and pipeline developments saw robust take-up by technology firms looking for space to house expansionary appetites.
The retail market showed signs of stabilisation, with rents maintaining in the last quarter of 2018. Placemaking continued to be a key focus for landlords.
Concerned about the supply build-up, the government has been pulling all stops to slow it down. CBRE expects sales momentum to moderate and end the year just north of 8,000 units on the back of limited launches and weak sentiments.
The bulk of the leasing activity in this quarter was driven by firms in the semiconductor, electronics, and third-party logistics industries. While most of this activity was driven by renewals, some firms embarked on expansion.