Chart of the Day: Capital values for premium grade offices to creep up some more

Despite global and local risks.

According to Colliers International, more foreign companies, including those in the trading (e.g. Novatek), brokerage (e.g. Haitong International Securities Group) and e-commerce (e.g. Rakuten and Lazada) industries, have recently opened or are looking to open new offices in Singapore to ride on the global recovery wave. 

Here's more from Colliers International:

This will contribute to demand for office space. Additionally, in 1Q 2014, the market saw numerous Request for Proposals (RFPs) by firms from the insurance, commodities and information and communications-related industries.

With midsize office space requirements of around 30,000 sq ft, they were seeking to explore different leasing options ahead of their lease expirations.

These RFPs could potentially translate to more office leasing deals being inked in the next six to 12 months. Underpinned by the expected healthy demand, it will be a landlord’s market in the Premium and Grade A office segment in 2014 given that most of these buildings are enjoying relatively high occupancies of above 90%.

Moreover, the pipeline of new Premium and Grade A office supply for the rest of 2014 and 2015 remains limited with only three major projects slated for completion: CapitaGreen (700,000 sq ft) in Raffles Place/New Downtown micro-market, South Beach (505,000 sq ft) in the Marina/City Hall micro-market and Westgate Tower (304,963 sq ft) in the Suburban micro-market.