CBD Grade A Office Rents To Rise Further In Q4
SINGAPORE – Data from Cushman & Wakefield (C&W) shows that property investment transactions in the city-state increased by 22 percent quarter-on-quarter to almost S$8 billion during the third quarter of this year, reported The Edge on Tuesday afternoon (12 October, SGT).
While Singapore’s residential real estate market accounted for the lion’s share in the overall quarterly volume, the office market still contributed a sizeable chunk.
Notably property investment sales in the office sector include the S$422 million acquisition of 61 Robinson Road, a 20-storey office building. The seller is ARA Private Fund, while the buyer is Rivulets Investments, a Singapore-based private equity fund management group.
At present, the commercial property is undergoing an asset enhancement initiative (AEI). Upon completion of the said upgrading works, 61 Robinson Road’s net lettable area will increase from 133,221 sq ft previously to 141,958 sq ft.
Meanwhile, real estate consultancy Cushman & Wakefield remains bullish on the prospects of the city-state’s office investment sector amidst the rebound in the office rental market.
As a matter of fact, rents of Grade A office space in Singapore’s central business district (CBD) continued to increase on a quarterly basis during the 3rd quarter after it resumed its positive trajectory and edged up by 0.5 percent quarter-on-quarter in Q2 2021.
“Against the backdrop of tight supply and steady demand from technology and wealth management firms amid a robust economic rebound, CBD Grade A office rents are poised to grow further for the rest of Q4 2021 and 2022,” said the real estate consultancy.
“Rising office rents, low interest rates and excess liquidity are fuelling investment market activities and office prices, which are set to rise further over the next few years,” added Cushman & Wakefield.