Rent for the Central Region office is down just over three percent in Singapore and has declined 3.1 percent for the entire year. The landlords are becoming more realistic about what they can get from rent and are looking for ways to fill the empty apartments.
The rent for the office has gone down for the second quarter in a row. The decrease in rent is making landlords a little nervous. The Huey Ying JLl company. Many are looking to relocate and they are developing a plan to find an area where the values are higher. They are giving in to the pressure of reduced rent. The demands for the rental units are also changing. There has been a decrease in leasing activity which is also bringing the price of rent down.
Grade A buildings have seen some slight growth since 2019 but the rate is still much slower than the previous year. These properties are being tracked as companies are very interested in the rent. Please see Penrose Condo Prices Here.
There is still some open space. Technology and flexible work stations can also be blamed for the decrease as some people are able to work from home. There are some features that renters are looking for and they would like to receive it. Renters are looking for buildings and spaces that would allow them to have access and use more technology. This is the most desired features that they are looking for.
Compared to the prices did go down some. The fall was at 0.6 percent which was still a decrease. In the previous year there were strong sales and development for offices and this got the attention of the investors. There seemed to be a high demand and the outlook was positive.
There are some changes that are set to happen in the market as of 2020. The demand for technology is increasing. If a business is able to offer technology to the customers than they will come out ahead and are more desirable. This is a good thing for workplaces but no good thing for landlords. Workplaces are being divided up and people are working flexible schedules. They are using the same building for different purposes. This has been happening in the past three years and will continue to happen in the future. There are also digital licenses that are being released in Singapore that will be released soon but the actual impact is not yet clear.
There are some things that experts will predict that is going to happen. The trend is real estate is the decline and it is expected to stay that way up to 2022. There is expected to be a decrease of up to six percent. This is a positive thing for people that are looking to rent as the prices will be going down. There are still some people that are looking to rent and landlords that still see this area as a place for investments. With the high population, there is no shortage of people looking to rent businesses at any price.