
Chart of the Day: Average office occupancy higher in FY15-FY18 compared to FY01-14
2015 will experience rent growth of 10%.
Leasing activity will surge in the coming months ahead of the supply deluge in 2016.
According to BNP Paribas, although net absorption has been strong, the strength of demand is a concern as a fair number of transactions were driven by relocation or upgradation, rather than expansion.
For 2015, analysts at BNP Paribas anticipate strong y-y rent growth of 10%. However, growth is expected to be stronger in 1H15 and weaker in 2H15. This is mainly due to expectations of a flurry of leasing activity ahead of the 3.6m sf new supply due to come onstream in 2016 (e.g., from the Marina One, Guoco Tower and Duo projects).