New reports show Singapore's rents for grade A offices rise by nearly 15% in Southeast Asia's financial capital, the Central Business District. According to Colliers International, it is the highest annual rental growth since 2010 due to less available vacancies.
Colliers also stated that last year the annual growth was 14.9% and in 2010 the annual growth was 22% after the global financial crisis.
Despite rising rent prices, demand is expected to remain strong as the expansion of the technology sector and flexible workspaces continues.
This upward trend is said to be expected to continue by Ms Tricia Song, head of research for Singapore at Colliers. "In view of tight vacancy and a muted supply pipeline, we expect the steady upward rental trend to persist over the next two years," she said.
She predicts average rents to rise 8% year on year this year, and a further 5% year on year next year.