PUBLISHED : Wednesday, 28 September, 2011, 12:00am
UPDATED : Wednesday, 28 September, 2011, 12:00am

Global turmoil weighs on Singapore office market

Singapore's office property market has cooled further from June to September 27, weighed down by global turmoil caused by the stalled economies and debt woes of the US and the euro zone, according to international property consultant Colliers International. Demand for office space had slowed in the second quarter, when the market entered a normalisation phase after stabilisation in demand by large space occupiers. During the period, overall grade A office rents in the central business district (CBD) crept up by a mere 2 per cent quarter on quarter to S$9.08 (HK$54.40) per square foot per month - the lowest quarterly growth since the second quarter of last year. The overall CBD grade A office gross rents also remained 36.1 per cent below the S$14.22 per sq ft per month achieved during the peak in the third quarter of 2008. Colliers' executive director of office services, Calvin Yeo, said: 'The overall CBD grade A office rents were largely supported by selected prime buildings in the Raffles Place/New Downtown micro-market, such as Asia Square Tower 1, Marina Bay Financial Centre, Ocean Financial Centre and OUE Bayfront, which have strong offerings and, as such, the ability to sustain rents'. Peggy Sito

Bank lending for August at lowest level since 2009

Bank lending for real estate across the mainland totalled 150.8 billion yuan (HK$183.4 billion) in August, 22 per cent of developers' total source of funds in the month, the lowest level since 2009, according to DTZ. National development loans and personal new home mortgages amounted to 87.1 billion yuan and 63.7 billion yuan, down 12.5 per cent and 7.4 per cent month on month. Meanwhile, developers own funds amounting to 296 billion yuan in August, marking an increment of 4.6 per cent month on month. Peggy Sito


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