Chart of the Day: Office rental momentum to stutter in 2H15 as landlords offer inventory

1H15 will be a period of improvement.

Most of the upward rental trajectory has already been priced in.

According to a report by CIMB, rents will continue to improve in early 2015, with little new incoming supply. However, pricing ability in 2015 would be more moderate than in 2104.

CIMB thinks that rental growth is likely to come under pressure in 2H15 onwards, as landlords start to market the huge incoming supply of 3.9m sq ft in 2016 (equivalent to 2-3 years’ supply) more actively. 

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