Notwithstanding the economic slow down around the world, the office occupancy cost has witnessed huge upswing in the year 2007 in Singapore. In a survey consisting of 171 major cities in the world, Singapore is just behind Moscow, commercial hub of India, Mumbai, capital of Philippines’ Manila and Norway’s capital Oslo. The sudden acceleration in rentals is due to the surety of returns from the commercial spaces in Singapore. World Bank survey too endorses this by placing Singapore as the most preferred destination in Ease of Doing Business.
Singapore’s rentals have increased by 83 percent in last one year, fastest rate in the world as per the survey conducted by the leading commercial property consultancy firm, CB Richard Ellis (CBRE). Singapore is currently ranked 11th most expensive business center in the world, climbing up from the 24th position, in last August. The reduction of market space due to the demolition of Asian Chambers Building, alteration works underway in two existing office blocks also added to the woes of the seekers of spaces. The supply crunch for spaces may get some relief once 2.3 million square feet of new shopping malls is available.
Singapore’s land constrained property market may look complex with its rental and prices, but this has taken place by its organic growth in all areas of business. The business powerhouses in the world have realized that having some space in Singapore makes business sense to boost their sales in Asian markets. If the influx of foreign money to the country is going to stay, the rentals of housing as well as commercial spaces will be unabated even in 2008.