[h=1]SG LIKELY TO SEE A 25% INCREASE IN RENT FOR OFFICE SPACES BY 2019, HIGHEST IN ASIA[/h]
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25 Sep 2014 - 9:23am
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According to a report by property consultancy firm Knight Frank, Singapore is likely to see a 25% increase in rent prices by 2019 on current prices and this would be the highest increase in all of Asia.
Globally, this would puts Singapore in 4th place for the highest cost of office rental behind San Francisco, Madrid and New York.
The report looked in detail at 15 global cities, 6 of which were in the Asia Pacific and found that on average, the price of premium office space is likely to increase 19.9% over the next 5 years.
The report found that currently, about 10.3% of all office spaces in Singapore is vacant but with the limited land and rising demand, this is likely to decrease to about 7.7% by 2019.
This smaller supply will also contribute to rising prices. Another factor identified by Knight Frank for the increased was that business sentiment and confidence in the stability of Singapore is high and is likely to attract even more companies to set up here.
The report predicted that this year alone, rentals are likely to increase 10% on last year's figures. Following that, as new office spaces which are currently under construction get completed, the rise in rental prices is likely to slow to about 6 or 7% for the following few years.
Another factor contributing to the sharp rise is that more Asian Insurers are eyeing property investments.
Overall, the report shows that these increases in rental spaces are likely to be adding to business costs and contribute to higher costs of living as the costs are passed on to consumers.
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For the new young professionals of this generation, Singapore was ranked as the 5th least affordable city. In first place was Hong Kong. In Singapore, young professionals are estimated to only have an average of 9.91% of disposable income left at the end of the month for saving.
In Hong Kong it was found that young professionals are likely to see a shortfall of 4.61% of their income when trying to meet the costs of living.
Frankfurt was found to be the most affordable city with up to 60% of young professionals' incomes able to be left over for saving after meeting their living costs.
These cost figures are based on fresh graduates salaries and costs of living in the districts surrounding the CBD. It includes basics such as rent, utility bills, food, drinks and groceries.
People may see much lower costs if they liver further away from the CBD.
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25 Sep 2014 - 9:23am
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According to a report by property consultancy firm Knight Frank, Singapore is likely to see a 25% increase in rent prices by 2019 on current prices and this would be the highest increase in all of Asia.
Globally, this would puts Singapore in 4th place for the highest cost of office rental behind San Francisco, Madrid and New York.
The report looked in detail at 15 global cities, 6 of which were in the Asia Pacific and found that on average, the price of premium office space is likely to increase 19.9% over the next 5 years.
The report found that currently, about 10.3% of all office spaces in Singapore is vacant but with the limited land and rising demand, this is likely to decrease to about 7.7% by 2019.
This smaller supply will also contribute to rising prices. Another factor identified by Knight Frank for the increased was that business sentiment and confidence in the stability of Singapore is high and is likely to attract even more companies to set up here.
The report predicted that this year alone, rentals are likely to increase 10% on last year's figures. Following that, as new office spaces which are currently under construction get completed, the rise in rental prices is likely to slow to about 6 or 7% for the following few years.
Another factor contributing to the sharp rise is that more Asian Insurers are eyeing property investments.
Overall, the report shows that these increases in rental spaces are likely to be adding to business costs and contribute to higher costs of living as the costs are passed on to consumers.
<ins id="aswift_1_expand" style="margin: 0px; padding: 0px; border: currentColor; width: 336px; height: 280px; display: inline-table; visibility: visible; position: relative; background-color: transparent; border-image: none;"><ins id="aswift_1_anchor" style="margin: 0px; padding: 0px; border: currentColor; width: 336px; height: 280px; display: block; visibility: visible; position: relative; background-color: transparent; border-image: none;"><iframe name="aswift_1" width="336" height="280" id="aswift_1" frameBorder="0" marginWidth="0" marginHeight="0" scrolling="no" vspace="0" hspace="0" allowfullscreen="true" style="left: 0px; top: 0px; position: absolute;" allowTransparency="true"></iframe></ins></ins>
For the new young professionals of this generation, Singapore was ranked as the 5th least affordable city. In first place was Hong Kong. In Singapore, young professionals are estimated to only have an average of 9.91% of disposable income left at the end of the month for saving.
In Hong Kong it was found that young professionals are likely to see a shortfall of 4.61% of their income when trying to meet the costs of living.
Frankfurt was found to be the most affordable city with up to 60% of young professionals' incomes able to be left over for saving after meeting their living costs.
These cost figures are based on fresh graduates salaries and costs of living in the districts surrounding the CBD. It includes basics such as rent, utility bills, food, drinks and groceries.
People may see much lower costs if they liver further away from the CBD.
