CDL sees signs of bottoming out in Singapore's office market

The group remains positive on the rental growth potential.

Property developer City Developments Limited is observing some signs of bottoming out in the Singapore office sector.

According to UOB Kay Hian, the group is optimistic of rental growth potential given the decrease in the supply of private office space expected by 2019.

This is against the backdrop of tenants taking advantage of the favourable market conditions to lock in renewals well ahead of their lease expirations.

"Management noted that the office market is showing nascent signs of a bottoming-out as Grade A and B core Central Business District (CBD) office rents were maintained at the same levels as in the previous quarter," analyst Vikrant Pandey said.