Serious Big Shit Here! Rentals Are Down, Office Vacancies Up To 11%! PAP Please Help!

[JohnTan]

SINGAPORE - Office and shop rents fell by more than 8 per cent in 2016, as their vacancy rates continued to rise, figures from the Urban Redevelopment Authority on Thursday (Jan 26) showed.

The decline in office rents accelerated in the October-December quarter, declining 1.8 per cent and making up an 8.2 per cent drop for the whole year.

Prices of office space dipped 0.6 per cent in the three months to December, more than the 0.4 per cent decline in the previous quarter. For the whole of 2016, prices of office space fell by 2.8 per cent.


The amount of occupied office space increased by a nett 1,000 sq m in the fourth quarter, reversing a decrease of 5,000 sq m in the previous quarter. But the stock of office space increased by 66,000 sq m (nett) in the fourth quarter, after an an increase of 101,000 sq m (nett) in the previous quarter.

As a result, the island-wide vacancy rate of office space at the end of the fourth quarter rose to 11.1 per cent, from 10.4 per cent at the end of the previous quarter.

Office rents might get some relief in time to come, going by supply figures.

There is about 786,000 sq m in gross floor area (GFA) of office space in the pipeline as of end-2016, down from 879,000 sq m GFA three months earlier.

The bulk of this will be completed over the next two years - 367,000 sq m in 2017 and 185,000 sq m in 2018. Supply drops sharply to 20,000 sq m in 2019, up to 138,000 sq m in 2020, before falling sharply again the next two years.

Shops saw rents decline by 1.2 per cent in the fourth quarter, less than the decrease of 1.5 per cent in the previous quarter. For the whole of 2016, shop rents fell 8.3 per cent, roughly double the 4.1 per cent decline in 2015.

But the island-wide vacancy rate of retail space improved a little, dropping to 7.5 per cent at end-2016 from 8.4 per cent at the end of the third quarter.

Prices of retail space inched up 0.2 per cent in fourth quarter, reversing a 0.6 per cent dip in the previous quarter. For the whole of 2016, prices of retail space fell 5.4 per compared with the 0.8 per cent decline in 2015.

http://www.straitstimes.com/busines...-82-in-2016-as-vacancy-rate-climbs-to-111-ura

 

[congo9]

The rental must come down some more. How do you talk about entrenpeurship or innovation when the business make money by sucking the blood ?

 

[tanwahtiu]

Real was date is not real. It is not brick and mortars but plastic and clipboards.

Chipboard construction ikea has plenty. So ikea products hv value or not?

 

[tanwahtiu]

Buildings build with technology has no value. This 4th industrial revolution building has no value. Can pull down a building in 2 days and up in 6 months were got value.

 

[ShaoXingJiu]

It's already too high. Biz close shops because of high cost. PaP greed is destroying singapore enterprise.

 

[syed putra]

Sounds like good news indeed. This will lower costs of doing business.

 

[iluvgst]

pap will help... akan datang... 10m population ponzi in the making.

 

[SGP_tiaolao]

PAP Help Si Mi LJ?

SG52 supposed to die and sink and vanished. No help can save SG52.

 

[frenchbriefs]

hmmm,my ireit owns properties in germany,first reit owns hospitals mostly in indoland and a few in sg,croesus owns malls in jippunland,UOL is mostly UK properties......hopefully wont be too affected by the events here.

 

[JohnTan]

hmmm,my ireit owns properties in germany,first reit owns hospitals mostly in indoland and a few in sg,croesus owns malls in jippunland,UOL is mostly UK properties......hopefully wont be too affected by the events here.

You should invest more in singapore to show your confidence and loyalty to your motherland. Instead, your money is quitting sinkie. Typical oppie cocksucker hoping that singapore would burn while at the same time making money thanks to to good PAP leadership.

 

[mojito]

The rental must come down some more. How do you talk about entrenpeurship or innovation when the business make money by sucking the blood ?

Silly man lah you. Rental go down then how will real estate entrepreneurs make money when they bleeding from paper losses?

 

[virus]

business model has failed even the basics. corporate greed for profit forfeit CS amongst a nos of necessary that build branding, image and customer loyalty. increasingly, stagnant pay drives down consumption n hard selling no longer works. new biz models talks of social interaction allowing non commercial entities to mingle with customers to refresh living space which customers are able to identify, to spend time and part money in malls.

 

[borom]

Rentals/capital values should be falling much faster but for the fact that businesses are allowed to take a "softer" option first-to retrench workers.
When after retrenching everyone they can release, and they are still underwater, only will they try to negotiate for lower rent or default on rentals.
This is a very sad state of affairs where properties are more valuable than humans and people vote based on the fear of their property values going down-even if it means their own countrymen will be on the streets without jobs.

So called world class economy with world class universities and yet most of the elite gain wealth though property rentals and appreciation.What innovation/creativity/adaptness when your "brightest" simply wants to find that property that can gain the most capital or rental?
Of course they tried shares but most are so" smart" they get burned big time

 

[Hans168]

The rental must come down some more. How do you talk about entrenpeurship or innovation when the business make money by sucking the blood ?

you make your money ONLY after govt.agencies hv creamoff and off................ eg cost of ownership n driving of car