Singapore office rents to rebound end-2017, says CCT

SINGAPORE (Nov 30): Singapore’s office rents will remain “a little soft” in 2017 and may pick up only at the end of the year when the amount of new supply of space shrinks, according to CapitaLand Commercial Trust, one of the city-state’s biggest landlords.

About 2.3 million square feet of space were added this year, driving rents down by 15%, said Lynette Leong, chief executive office of the real estate trust’s manager. Less than 500,000 square feet are being planned annually starting in 2018, with no supply in sight from 2020, she said in an interview with Bloomberg Television on Tuesday.

“Given that there’s still some new supply coming on stream next year, we foresee that rents will remain a little soft,” Leong said. “However, it should recover by the end of the year given that there’s very little new supply over the years ahead.”

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