Price of office space dipped 2.4% in 2017

Total supply dipped from 607,000 sqm to 597,000 sqm in Q4.

Prices of office space slightly fell by 2.4% YoY in 2017, compared with the decline of 2.8% in 2016. Meanwhile, rentals inched up by 0.4%, compared with the decline of 8.2% in 2016, the Urban Redevelopment Authority (URA) revealed.

According to flash data, Q4 prices edged up 2.7% QoQ, whilst rentals rose 2.6% QoQ.

As of the end of Q4, there was a total supply of about 597,000 sqm gross floor area (GFA) of office space in the pipeline, compared with the 607,000 sqm GFA of office space in the pipeline in the previous quarter.

As a result, the island-wide vacancy rate of office space dropped to 12.6%, from 13.3% at the end of the previous quarter.