Office prices down 4% in Q1: URA

The amount of occupied office space fell 7,000 sqm.

The fall in office prices widened to 4% in Q1 from the 0.5% decline in Q4 2019, according to data from the Redevelopment Authority (URA).

Likewise, rentals of office space slipped 0.8% QoQ from the 3.2% decrease in the previous quarter.

As at end-Q1, there was a total supply of about 682,000 sqm GFA of office space in the pipeline, compared with the 753,000 sq m GFA of office space in the pipeline in the previous quarter.

The amount of occupied office space fell 7,000 sqm (nett) in Q1, compared to the increase of 30,000 sqm (nett) in Q4 2019. The stock of office space rose 33,000 sqm (nett), compared with the increase of 29,000 sqm (nett) over the same period.

As a result, the island-wide vacancy rate of office space inched up 11% as at the end-Q1, from 10.5% as at end Q4-2019.