Colliers International, in its 3Q Asia-Pacific office report, notes that there are signs the worst is over in this property sector, as the overall pace of decline across the region for 3Q2009 was 2%,  ompared with 3.6% in the preceding quarter.

 

Singapore overtook Ho Chi Minh City as the third most expensive Asia-Pacific location for office rental, says Colliers, with Tokyo and Hong Kong retaining their first and second positions, respectively. Average annual gross rent per sq ft for Singapore in 3Q was US$53.55 ($74.28), a slight dip from US$55.70 in the previous quarter.

 

Even as the overall economic environment improves, Tay Huey Ying, director of research and advisory at Colliers International, believes that office rents will still come under downward pressure. “Rents and capital values of island-wide Grade A office space are forecast to remain soft and could continue to chalk up moderate declines of up to 5% for the last three months of the year, bringing the contraction for the whole of 2009 to 48%,” she says. The downtrend is expected to persist into 2010, with rental decline likely to drop no more than 15% more, she adds.