Singapore's office property market appeared to have averted an overheating situation
According to the latest quarterly office property market research report by Colliers International, this comes amid the continued easing of occupancy rate.
Average monthly gross rents of Grade A office space in Singapore recorded the third consecutive quarter of moderation in quarter-on-quarter growth at six per cent.
In particular, average monthly gross rents of Grade A office space in the Raffles Place and New Downtown micro-market grew by seven per cent to reach S$10.40 per square foot per month.
This is slightly less than the eight per cent gain recorded in the first quarter this year.
Colliers said the current office market is experiencing a rising supply of space stemmed from the gradual completion of new office developments.
In addition, the widening gap in rental expectations, as a result of landlords continuing to raise asking rents to leverage the up-cycle in the office property market, has started to meet with some resistance from tenants.
This trend has in turn contributed to a moderation in the leasing exuberance.
Looking forward, Colliers said the office sector would continue to be supported by drivers such as the banking and professional services sectors, where corporate hirings are likely to remain on the growth trajectory, due to Singapore's established infrastructure and strategic location near emerging markets.