Singapore office rents insensitive to GDP changes

Office rents are less sensitive in the GDP variations in Singapore, according to DTZ.

The DTZ report presents a base case for global property forecasts on the assumption that the economy shows real global GDP growth of 3.8% per annum over 2011 to 2015. To quantify the impact of the economic and financial uncertainties, the report presents the results of upside (+0.5% pa) and downside (-0.6% pa) economic scenarios. The analysis calculates the impact of changes in GDP growth on the prime office market rent forecasts.

Office rents are most sensitive to GDP variations in Tokyo, Hong Kong and Frankfurt, less sensitive in Paris, London West End and Singapore, with New York the least affected.