Singapore high-rise office rents decline by 7% as demand slows

SINGAPORE (Sept 15): Singapore landlords are paying the penalty for a slowing economy. Alone among the world’s major cities, the cost of renting an office with panoramic views is falling as supply outstrips demand.

Annual rents on the upper floors of Singapore’s skyscrapers fell 7% to about US$775 ($1,056) a square metre in the first six months, according to a 23-city index compiled by Knight Frank LLP. The biggest increase was in Shanghai, where rents climbed 7.6% to US$774. In Hong Kong, the most expensive market, rents rose by 5.9% to US$2,996 a square meter, the broker said.

“There’s a classic imbalance in the Singapore market,” said Will Beardmore-Gray, head of Knight Frank’s tenant representation and agency business. “They had relatively high supply and this has been exacerbated by a poor-performing economy and over development.”

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