Wednesday, November 14, 2012

Here's how difficult for lessors to find tenants nowadays

Occupier demand fell further in Q3.

Occupier demand continued to fall at a much slower rate than seen previously, with the net balance moving notably to -10 from -44, said RICS survey.

Meanwhile, availability continued to rise, with the  net balance shifting to +30.

"In Singapore, occupier demand fell further in Q3 although the pace of decline was easing. Alongside this, growth in the amount of available space registered a further rise. Not surprisingly, this is weighing on the  rental outlook. Particularly, due in part to the current challenging economic climate, rental expectations were more pessimistic in the office sector. As such, leasing incentives continued to play a significant role in  this market," said RICS.

"A notable shift however has emerged in the investment market, where enquiries maintained their positive momentum for the second consecutive quarter. Moreover, expected transactions bounced  back into positive territory, reflecting an improving outlook. This is feeding through into capital expectations, which have turned positive  after four quarters of negative readings," it added.

Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
DTZ Debenham Tie Leung (SEA) Pte Ltd (L3006301G)

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