The growth of rental properties at the Central Business District was consistent for nine quarters. But unfortunately, 2015’s second quarter didn’t followed suit. During the Q2 the commercial rents, particularly for the office spaces in Singapore’s prime areas, went downhill and weakened during the said period.
From the reports given by various property consultancies, most analysts said that many banks are not as demanding unlike before. Citing Standard Chartered as an example, it was reported that the former had to let go of their 4 levels, out of 24, in Marina Bay Financial Centre (MBFC) located at the Tower 1. This report came after the building extension to the Changi Business Park measuring about 154,000 square feet is said to be completed by the end of this year.
On the other hand, Barclay also has leases at One Raffles Quay. They waited for the leases to expire and gave up two floors recently. Barclay, however, is still on the same trading floor of One Raffles Quay. According to John McGuinness, the spokesman for Barclay, the company merged their staff occupying the two floors. The consolidated personnel are now at the MBFC Tower 2 and currently occupying 12 floors. Included in the merge are the employees from the corporate banking team, wealth management, as well as investment banking team.
Grade A office spaces located at the Central Business District went down by as much as 6.3% based on quarter to quarter data. During the second quarter it declined by SG$9.77 psf according to the data from Cushman & Wakefield recently.
Future landlords at the upcoming residential properties near the CBD such as Libertie @ Sarkies, 26 @ Newton, Forte Suites and Gramercy Park however are not alarmed with the said decline in office rents. Many are confident that by the time they residential spaces are ready their business will not experience such decline due to the demand for living areas that are in close proximity with the Central Business District.
If you would like to read on the new residential launches in the mass market, you may click on High Park Residences [Preview soon], Adana at Thomson [showflat will be opened for viewing soon] or the Sol Aces [hot executive condominium development].