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The fall-off in office demand mirrored the weak 1.1% GDP growth in 2003. Although the economy is on the mend, there is a 3 to 6-month lag before economic conditions filter through to increased office demand.As a comparison, suburban rentals are about $3.20 psf pm. Roughly 200,000 sq ft of space at HUB Hub has been made available this quarter, after last year’s corporatisation and the re-structuring of HDB.
On the positive side, the 2004 Budget offered a series of corporate incentives to attract inward investments, including a widely anticipated drop in the corporate tax rate from 22% to 20%.The preferential taxes under the RHQ and pioneer status schemes were both extended.Credit Suisse First Boston announced plans to locate one of its three Global Support Centres here in Singapore. Research from various sources also indicates that occupation costs for office users have fallen, enhancing Singapore’s cost competitiveness in the rankings of major cities in the world. There is also rising interest in moving to Core Central for those companies that are not currently there as the rental spread between districts has narrowed and there is an abundance of prime office supply available for lease in the district. For buying a property or selling Automated valuation model is the best choice. Most agree that GDP should grow by 3.5-5.5%, notwithstanding the re-emergence of terrorism after the Madrid train bombing and the bird flu virus early this year. Some concern has been raised about the strength and sustainability of the US recovery that has turned out to be a poor job generator. But, for Singapore, prospects appear brighter because of more bullish sentiment in Asia ex-Japan. The recent Madrid bombing, and uncertainty over the Taiwan elections have, however, raised risk exposure levels for corporate location and expansion decisions. The proposed BFC project is anticipated to be launched in May this year, but the full impact on the leasing market might not be felt immediately.Most landlords have firmed their asking rentals and are more reluctant to grant extensive concessions to prospects. Leasing activity should improve as the economy registers firmer growth, but rentals will require another 9 months or so to show signs of upturn, occurring only after the prevailing glut is partially absorbed and vacancy improves to around 12% or so.
On the positive side, the 2004 Budget offered a series of corporate incentives to attract inward investments, including a widely anticipated drop in the corporate tax rate from 22% to 20%.The preferential taxes under the RHQ and pioneer status schemes were both extended.Credit Suisse First Boston announced plans to locate one of its three Global Support Centres here in Singapore. Research from various sources also indicates that occupation costs for office users have fallen, enhancing Singapore’s cost competitiveness in the rankings of major cities in the world. There is also rising interest in moving to Core Central for those companies that are not currently there as the rental spread between districts has narrowed and there is an abundance of prime office supply available for lease in the district. For buying a property or selling Automated valuation model is the best choice. Most agree that GDP should grow by 3.5-5.5%, notwithstanding the re-emergence of terrorism after the Madrid train bombing and the bird flu virus early this year. Some concern has been raised about the strength and sustainability of the US recovery that has turned out to be a poor job generator. But, for Singapore, prospects appear brighter because of more bullish sentiment in Asia ex-Japan. The recent Madrid bombing, and uncertainty over the Taiwan elections have, however, raised risk exposure levels for corporate location and expansion decisions. The proposed BFC project is anticipated to be launched in May this year, but the full impact on the leasing market might not be felt immediately.Most landlords have firmed their asking rentals and are more reluctant to grant extensive concessions to prospects. Leasing activity should improve as the economy registers firmer growth, but rentals will require another 9 months or so to show signs of upturn, occurring only after the prevailing glut is partially absorbed and vacancy improves to around 12% or so.