Singapore’s office rents leapt 83 per cent in the past 12 months

Singapore’s office rents leapt 83 per cent in the past 12 months - the fastest rate in the world - as it shrugged off turmoil in global financial markets, commercial property consultancy CB Richard Ellis Research said.

The survey of office occupation costs in 171 cities worldwide showed that Singapore was followed by Russian capital Moscow, India’s financial capital Mumbai, the Philippines’ capital Manila and Norway’s capital Oslo.

‘The recent uncertainty in global financial markets has had no discernible impact on Singapore demand for office space,’ CB Richard Ellis Research (CBRE) said in its semi-annual Global Market Rents survey.

Office rents in Singapore rose to US$102.37 per square foot, making it the 11th most expensive business centre in the world, up from the 24th position in the August survey, CBRE said.

The survey showed London’s West End, Mumbai, the City of London and Moscow as the top four most expensive office markets in the world.

‘With (Singapore) rents at record levels, there is increasing tenant resistance to rental hikes, and occupiers are more prepared to explore lower cost locations and consider relocating to business parks or high-tech space,’ the survey said. — REUTERS

Source : Business Times - 22 Nov 2007